Financial -living water- irrigates the fertile ground for scientific and technological innovation, Shanxi smoothes the -technology-industry-finance- channel
On October 15, during an interview, Niu Qingshan, the deputy director of the Shanxi Provincial Science and Technology Department, highlighted the crucial role that financial support plays in technological innovation. He noted that over the past few years, the department has actively facilitated the deep integration of technology and finance, receiving robust backing from financial management bodies, various financial institutions, and relevant departments. This collaboration has been instrumental in establishing a seamless “technology-industry-finance” pathway, leading to positive outcomes.
At a themed news conference organized by the Propaganda Department of the Shanxi Provincial Committee of the Communist Party and the Information Office of the Shanxi Provincial Government, officials from the Science and Technology Department provided updates and answered inquiries from reporters about their initiatives to drive high-quality development and comprehensive transformation.
In collaboration with the Shanxi Branch of the People’s Bank of China and 12 other departments, the Shanxi Provincial Science and Technology Department has established a dedicated working group. They have drafted and implemented detailed guidelines aimed at supporting the development of technology-based enterprises, as well as action plans to enhance technology finance. They have also introduced policy measures for the Jinchuanggu Innovation-Driven Platform, which has led to the continuous improvement of the financial policy framework supporting technological innovation in Shanxi.
In 2022, the department, along with the Provincial Finance Department and the Provincial Local Financial Supervision Administration, released the “Management Measures for Special Projects and Fund Management in Technology Finance.” This initiative restructured the provincial science and technology planning system to create a dedicated technology finance section. By encouraging banks, guarantee firms, private equity funds, and investment companies to engage with innovation projects through measures like loan interest subsidies, risk compensation, and exclusive product rewards, the department has fostered an active participation in technological innovation.
Over the past three years, Shanxi has expanded the scope and scale of its technology finance initiatives, investing around 37.68 million yuan in fiscal funds and leveraging approximately 10.1 billion yuan in financial capital. The province is currently working to establish a 2 billion yuan provincial-level angel (seed) investment fund to further invigorate investment opportunities in the technology sector.
To optimize the effectiveness of financial resources, the Shanxi Provincial Science and Technology Department has formed strategic partnerships with eight banks, including Industrial and Commercial Bank of China, Agricultural Bank of China, and Bank of China. These collaborations aim to expedite the establishment of more specialized and independent technology finance institutions and tailored credit products.
To address the issue of information asymmetry between banks and enterprises, the province has built a “Shanxi Provincial Technology Finance Information Service Platform.” This platform facilitates communication between financial institutions and technology enterprises both online and offline, promoting a multi-layered integrated technology finance service system that combines bank loans, venture capital funds, technology insurance, corporate bonds, and capital markets.
Focusing on the financing needs of enterprises in the Jinchuanggu district, the Shanxi Provincial Science and Technology Department has provided concentrated training for financing roadshows. They recently hosted the 2024 Shanxi Technology Finance Investment and Financing Conference, where five financial institutions signed investment agreements totaling 69.12 million yuan with 12 companies. Financial management departments and institutions involved in stocks, bonds, guarantees, and insurance have consistently supported the development of Jinchuanggu, assisting resident enterprises in securing essential funding, boosting their confidence, and setting a positive trend for early, small, long-term, and hard-tech investments.
Looking ahead, the Shanxi Provincial Science and Technology Department plans to continue collaborating with relevant departments to intensify efforts towards achieving new milestones in the province’s technology finance initiatives, providing robust support for Shanxi’s high-quality development and modernization efforts.
