What’s new: Greater support must be given to help technology enterprises raise financing, financial regulators and tech officials agreed at a meeting held Monday to implement the guidelines made at the Central Financial Work Conference in October.
The meeting, held by China’s central bank, the Ministry of Science and Technology, the national financial regulatory administration, and the China Securities Regulatory Commission, discussed how to improve access to funding for technology companies from financial institutions including banks, securities companies, insurance and venture capital firms.
Officials also called for improvements in the sharing of public information about technology and in building a better system for assessing the effect of financial services on technology companies.
The background: The Central Financial Work Conference, which is held twice a decade, sets priorities for financial work over the coming five years. The October meeting warned of the less-than-impressive effectiveness of the financial sector in serving the real economy. It also called for more financing to promote scientific and technological innovation, advanced manufacturing, green development and micro, small and midsize enterprises.
It is generally acknowledged that banks lack the motivation to provide financial support to smaller tech companies. Speaking at the Caixin Summit earlier in November, Liu Hong, an executive vice president of Agricultural Bank of China Ltd., highlighted the challenges banks face in identifying and accurately pricing risk.
Read more Opinion: Five Takeaways From China’s Central Financial Work Conference
Contact reporter Qing Na (qingna@caixin.com) and editor Nerys Avery (nerysavery@caixin.com)
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