BEIJING, June 29 (Xinhua) -- China has been providing more medium and long-term funds to support development of strategic emerging industries.
As China advances economic transformation and upgrading, the country's strategic emerging industries are flourishing with great financing demand. However, it is hard for many enterprises of strategic emerging industries to obtain financial support from traditional commercial banks, as such enterprises feature light assets and high volatility despite high-speed growth. Besides, domestic listing system and capital market put certain restrictions on enterprises of strategic emerging industries in terms of getting direct financing, according to Fan Ruoying, researcher with international financial research institute of Bank of China.
To address the financing difficulties faced by enterprises of strategic emerging industries, Chinese authorities have been rolling out related preferential policies.
China Banking and Insurance Regulatory Commission, the country's top banking and insurance regulator, said it would urge banks and insurance institutions to increase their support for manufacturing industry, particularly advanced manufacturing, high-tech manufacturing and strategic emerging sectors.
The National Development and Reform Commission (NDRC), China's top economic planner, will give full play to the leading role of government funds such as national strategic emerging industry development funds and national emerging industry venture capital guidance funds, and give priority to the establishment of sub-funds in places with outstanding strategic emerging industry clusters to support the rapid growth of high-quality small and medium-sized enterprises, according to Zhao Chenxin, deputy secretary general of NDRC.
At local level, governments in Jiangsu province, Henan province, Chongqing municipality and Shanghai made it clear in the past month to expand financing channels for strategic emerging industries.
For example, Jiangsu said it would encourage insurance funds and qualified asset management products to invest in strategic emerging industries and advanced manufacturing industries in a market-oriented way. Meanwhile, the province plans to provide intellectual property-backed, equity-backed financing products and tax-based loans for sci-tech related innovation enterprises. (Edited by Su Dan with Xinhua Silk Road, firstname.lastname@example.org)