BEIJING: China welcomes international investors to invest in Chinese tech companies and opposes the instrumentalization and politicization of market-based investment activities, as well as the imposition of unfair investment barriers, Pan Gongsheng, governor of the People’s Bank of China (PBOC), the country’s central bank, said at a press conference on Thursday.
According to Pan, China’s technology innovation landscape remains dynamic, attracting significant attention from both domestic and international investors.
In recent years, the PBOC, in collaboration with relevant departments, has leveraged equity, debt, and insurance tools to enhance financial support for technological innovation, making substantial progress in this area.
He introduced two key policies aimed at optimizing financial support for technological innovation and industrial upgrades.
The first one involves the launch of a dedicated “Tech Board” in the bond market. This platform will support three key entities – financial institutions, tech enterprises, and private equity investment firms – in issuing technological innovation bonds and diversifying the range of available products.
The second one is to enhance the refinancing policy for technological innovation and industrial upgrades. The central bank will expand the refinancing quota from the current 500 billion yuan to a range of 800 billion to 1 trillion yuan (about $110 billion to $138 billion) to better meet corporate financing needs while also reducing refinancing interest rates.
These measures, Pan noted, will stimulate technological innovation and market vitality, attracting more private capital and government funds into the sector.
Looking ahead, the PBOC will strengthen coordination with relevant authorities to improve the financial policy framework supporting technological innovation. Efforts will focus on fostering a financial market ecosystem that nurtures innovation while continuously enhancing the scale, intensity, and effectiveness of financial support for the sector.
