China rolls out 15 financial policies to bolster tech

China unveiled 15 financial policies supporting science and technology, including building a national venture capital guidance fund, after the country pledged to further boost investment in the tech sector.

Seven government agencies, including the Ministry of Science and Technology, People's Bank of China, and the National Development and Reform Commission, have jointly released the policies.

Key measures include piloting merger and acquisition loans in select commercial banks and cities, where loans may cover up to 80 percent of transaction values with a repayment term of up to 10 years.

Pilot programs allowing financial asset investment companies to engage in equity investments will be expanded to cover all provinces where the initial 18 pilot cities are located.

Insurance funds will also be encouraged to participate in AIC pilots, while social security funds will be supported in investing in equity funds.

During the National People's Congress, Premier Li Qiang revealed a second consecutive 10 percent increase in China’s science spending. 

That amounts to 398 billion yuan (HK$430.93 billion) of spending, according to the finance ministry’s draft budget report.

STAFF REPORTER