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E-mail China.org.cn, April 8, 2024
Economic Daily:
Last year, the central financial work conference proposed to "boost the competitiveness and influence of Shanghai as an international financial center." Subsequently, Shanghai has also released an implementation plan to build pilot financial reform zones for scientific and technological innovation. May I ask, how will Shanghai promote the coupling of the international financial center and the sci-tech innovation center? Thank you.
Gong Zheng:
Thank you for your question. Let me answer it. The development of five international centers in Shanghai includes the international financial center and the sci-tech innovation center. Therefore, both finance and sci-tech innovation are core functions of Shanghai. It is only by moving forward in a two-way manner that we can best help all parties involved to achieve success. In our work practice, we have also deeply felt that the high-quality development of finance relies heavily on the empowerment of technology. The self-reliance and self-improvement of technology cannot be achieved without the support of a highly compatible financial service system. You could say that there is no finance without technology and no technology without finance.
In recent years, under the guidance of relevant central government departments, Shanghai has vigorously promoted the integration of science and technology within finance, and has gradually established a sci-tech finance system based on sci-tech credit, sci-tech insurance, equity investments and a multi-level capital market. Going forward, we will continue to focus on the entire chain and process of sci-tech innovation, relying on important platforms, such as the sci-tech finance reform pilot zones, to make strides in improving the quality and efficiency of Shanghai's sci-tech financial services. There are a few key measures:
First, we aim to optimize the ecosystem for technology investment, guiding the flow of financial resources to nourish the original innovation of sci-tech companies. Shanghai is a major cluster for equity investment institutions. The city hosts over 1,800 private equity and venture capital managers and manages more than 8,900 funds with a total scale reaching 2.3 trillion yuan — all three metrics ranking among the top in the country. We will further promote the high-quality development of the equity investment sector, guiding social capital to increase support for sci-tech companies that are in the startup phase, because the startup phase involves higher risks and more uncertainties, yet requires financial support. Recently, we have initiated the establishment of the Shanghai Sci-Tech Innovation Financial Research Institute, a social organization dedicated to fostering the development of angel investments, with the goal of strengthening the discovery and investment nurturing of early-stage projects, thereby facilitating effective investment matchmaking for social capital.
Second, we aim to strengthen the multi-level capital market, fully aiding technology enterprises in listing and financing for better development. Since its establishment five years ago, the Science and Technology Innovation Board (STAR Market) has become the preferred listing venue for hard and core technology companies. So far, there have been 570 companies listed, with initial public offering (IPO) funds cumulatively exceeding 900 billion yuan. Among these, 90 listed companies are from Shanghai. Although Shanghai does not have the highest number of listed companies, it ranks first in terms of cumulative IPO funds and market value among companies listed on the STAR Market, with IPO funds reaching 230 billion yuan. We will cooperate with the national regulatory authorities, continue to deepen capital market reforms, enhance the functions of the capital markets, such as the Shanghai Stock Exchange's Main Board and the STAR Market, and strive to make the Shanghai capital market an important, supportive engine for sci-tech innovation and in developing new quality productive forces.
Third, we aim to create sophisticated sci-tech credit and insurance products to better meet the diverse financial needs of sci-tech enterprises. We will guide financial institutions to adapt to the characteristics of new factors, such as technology, data and talent, to recognize the value of intangible assets, and to innovate products and services like credit and insurance, thereby increasing support for sci-tech innovation. For example, we have encouraged some commercial banks to pilot "sci-tech enterprise employee stock ownership plans and equity incentive loans" for technology-based non-listed companies in the Lin-gang Special Area and Zhangjiang Science City. This initiative is very helpful for stabilizing core employees and stimulating innovation vitality. Next, we will also support financial institutions in innovating and launching more specialized financial products that are urgently needed by sci-tech enterprises. Thank you.
Shou Xiaoli:
Thank you to all the speakers, and thank you to all the journalists for your participation. Today's press conference will now conclude. Goodbye, everyone.
Translated and edited by Zhu Bochen, Wang Qian, Guo Yiming, Liu Sitong, Lin Liyao, Liu Qiang, Zhang Junmian, Cui Can, Huang Shan, Wang Ziteng, Zhang Rui, Yan Bin, Wang Wei, Li Huiru, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.
