China is set to introduce a science and technology board within its bond market this year, reinforcing its dedication to financially supporting technological advancements, as stated by Pan Gongsheng, the governor of the People’s Bank of China.
During a press conference at the third session of the 14th National People’s Congress, Pan explained that this initiative is designed to assist financial institutions, tech companies, and private equity funds in issuing specialized bonds aimed at fostering scientific and technological innovation.
In collaboration with the China Securities Regulatory Commission and the Ministry of Science and Technology, the PBOC will establish detailed guidelines for the issuance and trading on this new board, enhance risk-sharing mechanisms, and reduce issuance costs.
Moreover, the central bank plans to refine its lending program for technological innovation and transformation, increasing its capacity from 500 billion yuan (approximately $69 billion) to a range of 800 billion to 1 trillion yuan.
Pan also mentioned that interest rates for this program will be lowered, and its coverage will be significantly broadened through streamlined policy execution, with coordination with fiscal authorities to ensure ongoing interest subsidies for the initiative.
Topics #China #science and technology bond market #technological advancements #technological innovation
