The banking and insurance regulator guided financial institutions to strongly support strategic emerging industries, advanced manufacturing and technology companies in Anhui province, particularly in fields such as chip manufacturing, equipment manufacturing and artificial intelligence.
The regulator promoted the establishment of a provincial financing guarantee company for tech firms. The company will repay 30 percent of an outstanding balance on behalf of a tech firm in the event of default. The rest of the loan repayment will be shared among a government-funded financing guarantee company at the level of a city, county or district (40 percent), the relevant bank (20 percent), and the local bureau of finance (10 percent).
The regulator promoted the launch of a provincial-level venture capital fund to support technology companies at the early stage and the growth stage. It also encouraged banks to explore innovative business such as IP pledge, a financing activity in which enterprises pledge their intangible assets including trademarks, patents and copyrights to obtain funds.
Hu Weiyi, president of the Industrial and Commercial Bank of China Anhui Branch, said the State-owned commercial lender made institutional innovation to meet the demands for innovative financial services in the province.
Source: China Daily
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