A former senior official from China’s banking regulator has called for the loosening of listing procedures for companies that engage in basic scientific research, as part of raft of measures to improve financial support for R&D undertakings.
Huang Hong (黄洪) former Deputy Chairman of the China Banking and Insurance Regulatory Commission (CBIRC)) said that regulators should simplify the listing procedures and relaxing listing requirements for institutions that engage in basic scientific research.
Huang made the remarks on 22 April, at the 5th Guangdong-Hong Kong-Macao Greater Bay Area Financial Development Forum held in Zhuhai, Guangdong.
In addition to capital market reforms, the former CBIRC official encouraged policy banks to provide special loans to support key basic scientific research tasks.
“When necessary, local governments can establish risk compensation mechanisms to share risks by providing financial subsidies and other means.”
Huang also called for insurance institutions to improve technology-related insurance products and services.
“Insurance institutions should appropriately reduce insurance premiums, increase the participation of basic scientific research units, and establish effective risk diversification and transfer mechanisms,” Huang said.
“For major basic scientific research projects, reinsurance mechanisms should be explored.”