National Financial Regulatory Administration: Recently, approval will be given for the third batch of pilot reforms for long-term investment of insurance funds, with an amount of 60 billion yuan.

At 3 p.m. on May 22, the State Council Information Office held a press conference, inviting Qiu Yong, Vice Minister of the Ministry of Science and Technology (MOST), Zhu Hexin, Vice Governor of the People's Bank of China (PBOC) and Director of the State Administration of Foreign Exchange (SAFE), and other relevant officials to introduce the policies related to science and technology finance and answer questions from journalists.

Qiu Yong, Vice Minister of MOST:

We will fully leverage the role of the leading department to further refine the task division for constructing the science and technology finance system

Qiu Yong, Vice Minister of MOST, stated that the "Several Policy Measures to Accelerate the Construction of a Science and Technology Finance System to Strongly Support High-Level Self-Reliance and Strength in Science and Technology" recently issued by seven departments is a foundational and leading institutional arrangement to achieve the mutual integration of science and technology and finance. MOST will fully leverage the role of the leading department, further refine the task division, clarify the milestones for task implementation, and promote the implementation of these policy measures to achieve early results.

We hope to establish a long-term investment mechanism for financial support of scientific and technological innovation

Qiu Yong, Vice Minister of MOST, said that recently, MOST and six other departments issued the "Several Policy Measures to Accelerate the Construction of a Science and Technology Finance System to Strongly Support High-Level Self-Reliance and Strength in Science and Technology." Through this document, we hope to establish a long-term investment mechanism for financial support of scientific and technological innovation. We will form a policy framework system for the development of science and technology finance, improve the incentive and restraint mechanisms, build a bridge between financial capital and scientific and technological innovation, and construct a diversified, multi-layered, and multi-channel pattern of scientific and technological investment.

The science and technology finance mechanism requires strengthening the synergy between science and technology and finance, enhancing central-local coordination, and leveraging the guiding role of fiscal and tax policies in financial investment

Qiu Yong, Vice Minister of MOST, stated that the development of science and technology finance is a complex systematic project that requires collaborative efforts from all parties. It requires strengthening the synergy between science and technology and finance, as well as enhancing central-local coordination. The "Several Policy Measures to Accelerate the Construction of a Science and Technology Finance System to Strongly Support High-Level Self-Reliance and Strength in Science and Technology" establishes a mechanism for the coordinated promotion of science and technology finance involving multiple departments, carrying out regional innovation practices, and comprehensively utilizing various financial instruments. In terms of investment methods, it emphasizes shifting from a fiscal mindset to a financial mindset and leveraging the guiding role of fiscal and tax policies in financial investment.

Zhu Hexin, Vice Governor of the PBOC and Director of the SAFE:

The "Science and Technology Board" in the bond market will primarily support top equity investment institutions with strong rankings and extensive investment experience in issuing bonds

Zhu Hexin stated that the "Science and Technology Board" in the bond market supports issuers in flexibly issuing bonds in installments, simplifying information disclosure requirements, and reducing or exempting some fees for bond issuance and trading. The "Science and Technology Board" in the bond market most needs to support equity investment institutions, as they are the main force in investing in early-stage, small-scale, and hard-core technology companies. These institutions mainly have characteristics such as being asset-light and having long investment cycles. If they rely on their own bond issuance for financing, they may face issues such as short financing terms and high financing costs. The "Science and Technology Board" in the bond market can address these issues. In addition, we have also established a risk-sharing mechanism for science and technology innovation bonds, with the PBOC providing low-cost re-lending funds. The "Science and Technology Board" in the bond market will primarily support leading equity investment institutions with strong rankings and extensive investment experience in issuing bonds.

Through the "Science and Technology Board" in the bond market, we aim to address the issues of short bond issuance tenors and high financing costs faced by equity investment institutions.

Zhu Hexin stated that among the three types of entities issuing science and technology innovation bonds, equity investment institutions are the most in need of support. Equity investment institutions play a crucial role in "investing early, investing small, and investing in hard technology." However, the current challenge is that equity investment institutions, being asset-light with long investment cycles, face short bond issuance tenors and high financing costs when relying on their own bond issuances. Therefore, through the "Science and Technology Board" in the bond market, we aim to resolve the issues of short bond issuance tenors and high financing costs for equity investment institutions.

Nearly 100 institutions have issued science and technology innovation bonds, with the total amount exceeding 250 billion yuan.

Zhu Hexin, the Deputy Governor of the People's Bank of China, stated that multiple institutions have already registered or issued science and technology innovation bonds. According to our statistics, nearly 100 institutions have issued such bonds, with the total amount exceeding 250 billion yuan. Moving forward, we will continue to closely monitor the situation, advance our efforts, and jointly build a robust "Science and Technology Board" in the bond market. Meanwhile, we also hope to continuously improve the supporting mechanisms to enable the "Science and Technology Board" to play a greater role.

Guo Wuping, spokesperson for the National Financial Regulatory Administration:

We will soon approve the third batch of long-term investment reform pilots for insurance funds, with a total amount of 60 billion yuan.

Guo Wuping, spokesperson for the National Financial Regulatory Administration and Director of the Policy Research Department, stated that the first batch of long-term investment reform pilots for insurance funds had a scale of 50 billion yuan, and the second batch was 112 billion yuan. Recently, we will also approve the third batch, totaling 60 billion yuan, bringing the cumulative scale to 222 billion yuan.

As of the end of Q1, the loan balance for high-tech enterprises reached 17.7 trillion yuan, up nearly 20% YoY.

Guo Wuping, spokesperson for the National Financial Regulatory Administration, stated that as of the end of the first quarter this year, the loan balance of the banking sector for high-tech enterprises reached 17.7 trillion yuan, up nearly 20% YoY.

Yan Bojin, CSRC:

The number of listed companies in strategic emerging industries on the Shanghai, Shenzhen, and Beijing Stock Exchanges has approached 2,000, with a market capitalization ratio of nearly 40%.

Yan Bojin, Chief Risk Officer and Director of the Issuance Supervision Department of the China Securities Regulatory Commission (CSRC), stated that in response to the characteristics of technology enterprises, the CSRC has streamlined and optimized listing conditions, continuously enhancing the technological content of newly listed companies. The number of listed companies in strategic emerging industries on the Shanghai, Shenzhen, and Beijing Stock Exchanges has approached 2,000, with a market capitalization ratio of nearly 40%.

Currently, the cumulative issuance of science and technology innovation bonds in the exchange bond market has reached 1.2 trillion yuan, with the raised funds mainly invested in industries such as semiconductors and artificial intelligence.

Yan Bojin, Chief Risk Officer of the China Securities Regulatory Commission (CSRC), stated that the exchange bond market has now become an important channel for direct financing for technology enterprises. The cumulative issuance of science and technology innovation bonds has reached 1.2 trillion yuan, including 53.9 billion yuan issued in 2024, with an issuance scale of 6,100 yuan, representing an overall growth of 10%. The raised funds are mainly invested in industries such as semiconductors, artificial intelligence, new energy, and high-end manufacturing.

We will provide more transparent, efficient, and predictable regulatory policies for the overseas listing of technology enterprises.

Yan Bojin, Chief Risk Officer of the CSRC and Director of the Issuance Supervision Department, stated that the CSRC is unwavering in its commitment to advancing high-level opening-up and strongly supports technology enterprises in making good use of both domestic and overseas capital markets. Since the implementation of the new regulations on overseas listing filings, as of the end of April this year, 242 domestic enterprises have completed overseas listing filings, including 83 technology enterprises, mainly concentrated in fields such as information technology, new energy, and advanced manufacturing. The CSRC will continue to support eligible technology enterprises in utilizing domestic and overseas capital markets for development and provide more transparent, efficient, and predictable regulatory policies for their overseas listings.

Further strengthen the safety and regulatory compliance of the use of raised funds by publicly listed firms.

Yan Bojin, Chief Risk Officer of the CSRC and Director of the Issuance Supervision Department, stated that while supporting the development of technology enterprises, the CSRC also places great emphasis on the supervision of raised funds. The capital market in China has always had strict regulatory, disclosure, and usage requirements for the raised funds from initial public offerings (IPOs) and refinancing by publicly listed firms. Recently, the CSRC revised and issued regulatory rules for the raised funds of publicly listed firms, proposing that raised funds should be used for their designated purposes and focused on the core business to support the development of the real economy. The CSRC strictly regulates changes in the use of raised funds and further strengthens the safety and regulatory compliance of their use by publicly listed firms.