China ramps up financial support for tech innovation: senior official

BEIJING, Feb. 27 (Xinhua) -- China has made substantial progress in strengthening financial support for technological self-reliance, launching a national venture capital guidance fund with an estimated total scale of 1 trillion yuan (about 144.45 billion U.S. dollars), a senior official said on Friday.

Pan Xiaodong, secretary general of the Ministry of Science and Technology, told a press conference in Beijing that the fund will focus on investment in early-stage, small, long-term and hard-tech enterprises.

Pan noted that the ministry, together with the People's Bank of China and six other government departments, last year issued a policy document to accelerate the establishment of a technology-finance system. A coordination mechanism has since been launched to ensure effective implementation, already achieving notable results.

Additionally, the ministry has collaborated with financial institutions and local governments to establish various funds totaling over 350 billion yuan, including tech-industry integration funds and secondary market funds, to streamline venture capital circulation.

Bank credit support for tech innovation has also been enhanced significantly. The scale of relending for technological innovation and technological transformation has been increased to 1.2 trillion yuan, with interest rates lowered to 1.25 percent and a broader scope of support, Pan said.

By implementing a special guarantee plan for technological innovation, 26 banks have signed contracts with tech enterprises exceeding 390 billion yuan in total. By the end of 2025, outstanding loans to tech-based small- and medium-sized enterprises had reached 3.63 trillion yuan -- a 19.8 percent year-on-year increase.

Pan noted that the capital market's capacity to serve technological innovation has been strengthened, with reform measures for the Science and Technology Innovation Board (STAR) market implemented to enhance its inclusiveness and adaptability.

The bond market has also opened a long-term, low-interest direct financing channel for financial institutions and sci-tech enterprises, with a total of 1.8 trillion yuan in technology innovation bonds issued by various entities in 2025, according to the official. ■