Shanghai enhances financial support for technology innovation

Shanghai will further optimize its technology investment ecology, consolidate the multi-level capital market and improve the supply of technology-focused credit and insurance products so that the financial sector can better serve technology innovation, said Shanghai's Mayor Gong Zheng.

Gong made such comments during a press conference held by the State Council Information Office.

As Gong further explained, Shanghai has gathered more than 1,800 private equity and venture capital management firms. These companies have more than 8,900 funds under management, with a total asset under management approaching 2.3 trillion yuan ($320 billion).

Against that backdrop, the equity investment industry should seek high-quality development in Shanghai. Social capital should be better guided to step up support for technology start-ups, which entail more uncertainties but ask for more financial support, he said.

Meanwhile, by further consolidating Shanghai's multi-level capital market, technology enterprises can seek substantial development by seeking financing via listing, said Gong.

Ever since the STAR Market was launched on the Shanghai Stock Exchange in 2019, a total of 570 companies have been listed on this technology-focused board, with combined IPO financing exceeding 900 billion yuan.

Efforts will be made to deepen the reform of the capital market and give more play to SSE's main board and the STAR Market so that Shanghai's capital market can serve as an important engine to support scientific and technological innovation and nurture new quality productive forces, said Gong.

Technology companies' diversified financing demand should be better addressed, added Gong.

In specific, financial institutions should attach more importance to the value of intangible assets and come up with innovative credit and insurance products and services, he said.

In Lin-gang Special Area and Zhangjiang Science City, both of which are located in the Pudong New Area, some commercial banks have been encouraged to provide loans to the non-listed technology companies based on the stock ownership plans and equity incentives that these companies have provided to their employees. Such an attempt helps companies to retain their core employees and stimulate innovation vitality, as Gong further explained.