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E-mail China.org.cn, October 24, 2024
Beijing has made significant strides in developing a robust financial ecosystem that supports technological innovation. The capital city has channeled substantial financial resources into scientific advancement by focusing on technology, green initiatives, inclusive finance, pension systems and digital transformation.
The central government's emphasis on technology finance during the 2023 Central Financial Work Conference has strengthened Beijing's commitment to innovation. The city has directed more financial resources toward tech enterprises, with total loans to technology firms now surpassing 1 trillion yuan ($140 billion).
Beijing has introduced innovative financial policies to facilitate the growth of tech startups. For instance, the establishment of the Zhongguancun Sci-Tech Innovation Financial Service Center provides a centralized hub for financial products and services to meet tech companies' needs.
Another key development is the pilot program for merger and acquisition (M&A) loans. Beijing has encouraged business expansion by increasing the loan-to-value ratio for M&A transactions from 60% to 80%, enabling more companies to pursue strategic acquisitions.
Beijing has also introduced specialized financial products to meet tech firms' financing needs. Banks now offer credit-based loans that evaluate a company's technological capabilities, patents and intellectual property as key lending criteria.
The city has expanded financial access for small- and medium-sized enterprises focused on specialized technologies and unique products. Through bank partnerships and financing events, Beijing has ensured that nearly 60% of these specialized firms secure credit access.
The capital market plays a crucial role in supporting tech company growth. Beijing has helped numerous tech firms list on the Beijing Stock Exchange and other trading venues, securing billions of yuan in funding. The city has also created government investment funds targeting promising tech companies, especially those in emerging industries.
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