The People’s Bank of China (PBOC) has led the release of a new directive calling for greater financial support for tech innovation across major cities in the Yangtze River Delta.
On 18 November, PBOC participated in the release of the “General Plan for the Development of Tech Innovation Finance Reform Trials in Shanghai, Nanjing, Hangzhou, Hefei and Jiaxing” (上海市、南京市、杭州市、合肥市、嘉兴市建设科创金融改革试验区总体方案).
Other government authorities participating in the launch of the Plan included the National Development and Reform Commission (NDRC), the Ministry for Industry and Information Technology (MIIT), the Ministry of Finance (MOF), the China Securities Regulatory Commission (CSRC), China Banking and Insurance Regulatory Commission (CBIRC) and the State Administration of Foreign Exchange (SAFE).
The focus of the Plan is the “establishment of financial support for a Yangtze River Delta coordinated innovation system, and acceleration of the establishment of a sustainable tech innovation financial services system with broad channels, multiple tiers and comprehensive coverage.”
The Plan contains 19 policy measures cross 7 areas, including:
- Improving the tech innovation financial institution organisation system.
- Driving innovation in tech-innovation financial products.
- Making full use of a multi-tier capital markets system.
- Driving the use of technology to invigorate finance.
- Shoring up the foundations for tech innovation financing.
- Firmly advancing financial risk prevention and control.
State-owned media said that the Plan would “be of benefit to coordinating the drive for original innovation, tech innovation and industry innovation; driving the formation of an excellent ecosystem with a structural balance between financial supply and demand and the effective prevention of financial risk, and the creation of new heights for tech innovation and manufacturing research and development.”