China’s central bank is spearheading a trial run to finance technological innovation in the Yangtze River Delta

The People’s Bank of China (PBOC) has led the release of a new directive calling for greater financial support for technological innovation in major cities in the Yangtze River Delta.

On November 18, the NBFC participated in the release of the “General Plan for the Development of Trials of Technological Innovation Financing Reform in Shanghai, Nanjing, Hangzhou, Hefei and Jiaxing” solution).

Other government agencies involved in the launch of the Plan included the National Development and Reform Commission (NDRC), Ministry of Industry and Information Technology (MIIT), Ministry of Finance (MOF), China Securities Regulatory Commission (CSRC), China. The Banking and Insurance Regulatory Commission (CBIRC) and the State Administration of Foreign Exchange (SAFE).

The focus of the Plan is to “build financial support for a coordinated innovation system in the Yangtze River Delta and accelerate the establishment of a sustainable financial service system of technological innovation with broad channels, multiple levels and full coverage.”

The plan contains 19 policy measures in 7 areas, including:

• Improvement of the organization system of a technologically innovative financial institution.
• Encouraging innovation in technologically innovative financial products.
• Full use of the multi-level system of capital markets.
• Stimulating the use of technology to boost finances.
• Strengthening the foundations for financing technological innovation.
• Strong promotion of financial risk prevention and control.

State media said the plan would be “helpful in coordinating original innovation, technical innovation and industry innovation; stimulating the formation of an excellent ecosystem with a structural balance between financial supply and demand and effective prevention of financial risks, as well as creating new heights for technical innovation and manufacturing research and development.”