Recently China's banking regulator issued two documents ordering
the banking sector to step up financial services to major science
and technology projects and local high-tech enterprises.
The move is aimed at creating a favorable financial environment
to encourage innovation.
It's also intended to support the government's National
Guideline on Medium and Long-Term Programme for Science and
Technology Development (2006-20), the China Banking Regulatory
Commission (CBRC) said yesterday.
According to the documents commercial banks and other financial
institutions should offer credit to the following types of
high-tech enterprises:
-- Those responsible for research and development in the key
sectors laid out in the National Guideline for Science and
Technology.
-- Those engaged in national or provincial-level high-tech
projects.
-- Those providing high-tech content and additional value or are
active in high-growth sectors like bio-engineering, new materials
development, energy conservation and environmental protection.
-- Those with leading technologies, sound credit histories and
good economic and social benefits.
The document requires commercial banks to offer services that
are suited to the needs of high-tech enterprises. It also
highlights the need for financial support for export-oriented
enterprises and small-scale technology businesses, the CBRC
said.
In the second document the CBRC ordered policy banks to set up
special accounts for projects that support the country's key
science and technology programs.
The document outlines the principles, processes, supporting
fields and risk control and prevention mechanisms for policy banks
offering financial support to key science programs. "The policy
banks must undertake such policy-oriented financial services
through public bidding," the document states.
Under the National Guideline on Science and Technology, issued
by the State Council a year ago, science and technology is expected
to contribute at least 60 percent of the country's economic growth
by 2020. It's currently 30 percent.
(China Daily February 1, 2007)