Interpretation of the portal website of Guangdong Provincial People’s Government in ＂Implementation Opinions on Accelerating the Deep Integration of technology and finance to Help the Innovation and D

　　Recently, the general office of the provincial government issued the "Implementation Opinions on Accelerating the Deep Integration of technology and finance to Help the Innovation and Development of Science and Technology Enterprises" (hereinafter referred to as "Implementation Opinions"). The relevant contents are now interpreted as follows:

　　1. What is the background of the formulation of the Implementation Opinions?

　　Scientific and technological innovation can not be separated from the strong support of finance. Since the 18th National Congress of the Communist Party of China, General Secretary of the Supreme Leader has repeatedly stressed that achieving high-level scientific and technological self-reliance is the key to Chinese modernization. It is necessary to strengthen the dominant position of enterprises and promote the deep integration of capital chain and talent chain in innovation chain industrial chain. On April 19, 2022, General Secretary of the Supreme Leader presided over the 25th meeting of the Central Committee for Comprehensively Deepening Reform, stressing that "we should focus on the shortcomings and weaknesses of scientific and technological innovation in financial services, improve the financial support innovation system, and promote the financial system to better meet the needs of scientific and technological innovation in the new era". In October 2023, the Central Financial Work Conference clearly pointed out that it is necessary to "do five major articles on technology and finance, green finance, inclusive finance, pension finance and digital finance", among which technology and finance is in the first place.

　　In order to do a good job of "technology and finance", the provincial party committee and the provincial government made a series of arrangements, and provincial leaders repeatedly stressed the need to solidly promote the financial integration and development of science and technology industries. In recent years, our province has guided all kinds of financial resources to support scientific and technological innovation in various ways, and achieved certain results. However, there are also some problems such as insufficient efforts to "invest early, invest small and invest hard in science and technology", imperfect credit risk sharing mechanism, and insufficient service products and models in technology and finance. In order to effectively solve these problems, according to the work arrangements of the provincial party committee and the provincial government, the Provincial Department of Science and Technology, together with the Financial Office of the provincial party committee, Guangdong Branch of the People’s Bank of China, Guangdong Supervision Bureau of the State Financial Supervision Administration, Guangdong Securities Regulatory Bureau and other financial management departments, studied and drafted the Implementation Opinions, which were finally issued in the name of the general office of the provincial government.

　　2. What are the main considerations in the Implementation Opinions?

　　The "Implementation Opinions" put forward a total of 15 policies, covering venture capital, bank credit, financing guarantee, multi-level capital market, technology insurance, cross-border finance, service system, financial technology, etc., actively guiding all kinds of capital to focus on major scientific and technological tasks, and concentrating on promoting breakthroughs in original core technologies and cutting-edge disruptive technologies and transforming them into real productivity, and vigorously developing new quality productivity; Build a comprehensive service system that provides diversified, all-round and relay financial support for the whole life cycle of science and technology enterprises, and emphasize the need to coordinate finance to support scientific and technological innovation and prevent financial risks.

　　3. What measures does the Implementation Opinions take to guide venture capital to support scientific and technological innovation?

　　At present, there are still some problems in the development of venture capital, such as the lack of long-term and patient capital participation in "investing early and investing small", the insufficient sustainable investment obtained by many science and technology enterprises in the "from 0 to 1" stage, the imperfect assessment, fault tolerance, profit-making and incentive mechanisms of state-owned venture capital institutions and government investment funds, the agglomeration effect of venture capital institutions and high-end venture capital talents needs to be further strengthened, and the funding sources and exit channels of venture capital are not smooth enough. In order to solve these problems, the "Implementation Opinions" actively guided from three aspects.

　　The first is to promote venture capital institutions to invest in early investment and small investment in hard technology.Promote the coordinated development of government investment funds at all levels, and guide social capital to invest more in key technical fields and start-up technology-based enterprises in Guangdong. With the mode of "public welfare funding+equity investment", we will support original core technologies, cutting-edge disruptive technological breakthroughs and transform them into real productive forces. Support the cultivation and establishment of proof-of-concept funds. Establish and improve the investment decision-making, performance appraisal, market-oriented selection and employment, employee incentives, fault tolerance and exemption systems of state-owned venture capital institutions, and promote them to better play the key role of early investment, small investment and hard technology. Optimize the performance evaluation methods of government investment funds in the field of innovation and entrepreneurship, and do not take the preservation and appreciation of state-owned capital as the main assessment target. Give some subsidies to venture capital institutions that invest in seed-stage and start-up technology-based enterprises in the province, support the establishment of angel investment funds, and cultivate and expand angel investors.

　　The second is to guide venture capital institutions and high-end talents to develop in Guangdong.Encourage qualified cities to give appropriate subsidies to newly registered local venture capital institutions and their senior managers according to certain conditions, and attract domestic and foreign venture capital institutions and venture capital talents to settle in Guangdong. Intensify efforts to introduce high-end talents for venture capital, and eligible talents will enjoy relevant preferential policies according to regulations. Strive for state support and give priority to the implementation of differentiated tax rates and other preferential tax policies to encourage venture capital enterprises to invest for a long time in Guangdong.

　　The third is to broaden the sources of funds and exit channels for venture capital.Under the premise of compliance with laws and regulations, controllable risks and sustainable business, subsidiaries with investment functions, financial subsidiaries, securities companies, insurance institutions and trust companies of commercial banks are supported to provide long-term financial support for venture capital through capital contribution or development of corresponding long-term investment products. Encourage government financing guarantee institutions to provide credit enhancement support for venture capital enterprises to issue bonds for scientific and technological innovation. Encourage social capital to set up private equity secondary market funds (S funds) according to laws and regulations, and support Guangdong regional equity market to carry out equity investment and venture capital fund share transfer pilot projects.

　　4. What measures does the Implementation Opinions take to guide financial institutions such as banks and insurance to further strengthen their support for technology-based enterprises?

　　In recent years, banks, insurance and other financial institutions have increased their support for science and technology self-reliance, but there are still some problems, such as inaccurate and rich financial services and products, imperfect management mechanism dedicated to serving science and technology enterprises, and imperfect risk sharing mechanism. In order to solve these problems, the Implementation Opinions focuses on guiding from four aspects.

　　One is to guide banks to provide financial services covering the whole life cycle of innovation chain and enterprises.Guide development and policy-oriented financial institutions to provide more long-term and low-cost financial support for the construction of qualified major scientific and technological innovation platforms. Under the premise of risk control, support banking institutions to increase R&D loan support for science and technology enterprises. For science and technology enterprises in the initial stage, on the basis of risk prevention and control, we should increase credit loans, strive to improve the "first loan rate" of science and technology enterprises, and standardize the development of "science and technology talent loans"; For science and technology enterprises in the growth period, we should increase project loans in combination with the needs of expanding production, and standardize the supply chain finance, intellectual property pledge loans and other businesses; For mature technology-based enterprises, we will strengthen comprehensive financial services and encourage market-oriented mergers and acquisitions through M&A loans. Encourage banks to make full use of the policy of renewing loans without repayment of principal and adopt more flexible interest rate pricing and interest repayment methods to effectively meet the financing needs of different types of science and technology enterprises.

　　The second is to promote banks to improve the management mechanism of serving technology-based enterprises.Promote the enterprise innovation points system, encourage banking financial institutions to establish an exclusive evaluation system for financing of science and technology enterprises with enterprise innovation ability as the core index, and implement differentiated credit approval mechanism. Encourage banking financial institutions to establish a relatively independent centralized technology and finance business management mechanism, and strengthen the front, middle and back office collaboration. Encourage the standardized construction of specialized or characteristic branches in technology and finance, establish professional teams, specialized wind control systems, special incentive assessment mechanisms and credit standards for exclusive customers, and appropriately delegate credit approval and product innovation authority. Support banking institutions to list the loan scale of science and technology enterprises separately, and adjust and optimize the economic capital occupation coefficient. Banking financial institutions are encouraged to implement technology and finance’s due diligence exemption system in detail and establish a negative list of due diligence exemption. Explore the overall assessment of scientific and technological innovation loans in cycles and batches. By implementing the policy requirements of appropriately increasing the tolerance of non-performing loans of science and technology enterprises, the tolerance of non-performing loans of small and micro science and technology enterprises can be increased by no more than 3 percentage points compared with the non-performing loan rates of various loans.

　　The third is to improve the risk sharing and compensation mechanism of science and technology credit.Promote government financing guarantee institutions to improve their business models and build a risk sharing mechanism with banking financial institutions. Strengthen the linkage mechanism between provinces and cities for risk sharing and compensation of science and technology credit. Improve the risk compensation management system of science and technology credit, adjust and optimize the loan risk sharing ratio and compensation standard according to the innovation ability of science and technology enterprises and the development characteristics of different life cycles, and support the inclusion of science and technology credit products such as "science and technology talent loan" and "scientific and technological achievements transformation loan" in the scope of risk compensation.

　　The fourth is to guide insurance institutions to provide support and guarantee for science and technology enterprises.Support insurance funds to help the development of science and technology enterprises through equity, creditor’s rights, combination of stock and debt, funds and other ways; Encourage insurance institutions to enrich the types of insurance, and provide insurance protection for technology research and development, application and transformation of scientific and technological achievements, intellectual property rights confirmation and rights protection, and financing of scientific and technological enterprises. Explore the establishment of a provincial-level technology insurance product recommendation mechanism, and provinces and cities will jointly provide certain premium subsidies for technology-based enterprises to purchase insurance products included in the recommended catalogue. Explore the construction of a co-insurance mechanism for science and technology insurance.

　　V. What measures does the Implementation Opinions take to play the role of multi-level capital markets?

　　First, guide technology enterprises to raise funds through the stock and bond markets.Implement the step-by-step cultivation plan for listed reserve scientific and technological enterprises. We will promote local cities to improve the subsidy policies for the listing of science and technology enterprises, and focus on supporting the listing and financing of high-quality enterprises that meet the national and provincial strategic needs and break through key core technologies. Encourage listed technology-based enterprises to raise funds by issuing stocks or convertible bonds, and carry out mergers and acquisitions focusing on "strengthening the chain, extending the chain and supplementing the chain" in the industrial chain. Encourage qualified high-quality science and technology enterprises to issue science and technology bills and science and technology innovation corporate bonds. Guide unlisted science and technology enterprises to issue science and technology bills and science and technology innovation company bonds with conversion conditions, and solve the capital needs at different stages of development through the linkage of stocks and bonds. Promote the direct financing of technology-based enterprises through intellectual property securitization products such as the patent licensing asset support plan. Support the construction of national high-tech zones and the issuance of real estate investment trusts (REITs) in new infrastructure areas such as big data, artificial intelligence and Internet of Things, and encourage the recovery of funds to expand investment in scientific and technological innovation.

　　The second is to promote securities and equity exchanges to accurately serve Guangdong science and technology enterprises.Support and promote the Shanghai, Shenzhen and Beijing stock exchanges and professional securities service institutions to set up service bases and workstations in qualified cities or establish a designated contact system to provide accurate services for science and technology enterprises. Improve the efficiency of service technology innovation in Guangdong’s regional equity market, continuously enrich service tools and financing products, and promote the efficient operation of "specialized, special and new boards" and "scientific and technological innovation boards".

　　6. What measures does the Implementation Opinions take to promote cross-border financing of technology-based enterprises?

　　The "Implementation Opinions" proposes to rely on Guangdong-Hong Kong-Macao Greater Bay Area’s major cooperation platforms such as Hengqin, Qianhai, Nansha and Hetao to promote the complementarity, interconnection and intercommunication among Guangdong, Hong Kong and Macao and technology and finance, and further clarifies that a green channel should be established for foreign investors to invest in venture capital enterprises in Guangdong Province through qualified foreign limited partners (QFLP) and high-tech projects that meet the requirements of the national catalogue of industries encouraging foreign investment. Support high-tech enterprises, specialized and innovative enterprises, and small and medium-sized science and technology enterprises to independently borrow foreign debts within the quota stipulated in the pilot project of cross-border financing facilitation.

　　Seven, the "Implementation Opinions" put forward to carry out or strive for what technology and finance reform and innovation pilot?

　　To promote the deep integration of technology and finance, we need to constantly explore new models, mechanisms and paths. The "Implementation Opinions" put forward some measures, such as launching a pilot project of supplementary investment and loan linkage, establishing a new mechanism of "evaluating by investment" and "evaluating by competition", and exploring business models such as "loan+external direct investment" to promote the linkage between financial funds and venture capital, credit and other funds to support the development of science and technology enterprises. In order to intensify reform and innovation, the "Implementation Opinions" also proposed to strive for the Guangzhou-Shenzhen Science and Technology Innovation Financial Reform Experimental Zone to land as soon as possible; Strive for state support, and explore financial asset investment companies to carry out equity investment business of technology-based enterprises that do not aim at debt-to-equity swap in mainland cities of Guangdong-Hong Kong-Macao Greater Bay Area.

　　8. What measures does the Implementation Opinions take to promote information sharing?

　　Problems such as "data barrier" and "information island" restrict the availability of financing for science and technology enterprises. On the premise of complying with laws and ensuring data security, the Implementation Opinions actively promotes the integration and open sharing of public information of technology-based enterprises, including: relying on the National Comprehensive Credit Service Platform for SME Financing, gradually integrating existing resources such as "Opening Guangdong", "Small and Medium-sized Financing", "Guangdong Credit Information Financing" and "Shenzhen Local Credit Information Platform" to promote the financing docking between financial institutions and technology-based enterprises. Open the basic data of intellectual property rights for financial institutions to obtain in batches.

　　9. What technology and finance service platforms are proposed in the Implementation Opinions?

　　Multi-level technology and finance service platform is a bridge to realize the docking of scientific and technological resources and financial resources. The Implementation Opinions focuses on building four platform systems.

　　The first is to build a collaborative platform for Industry-University-Research’s investment.Relying on state-owned venture capital institutions, we will build a collaborative innovation platform for Industry-University-Research’s investment and investment, such as "Guangdong Branch Release", and establish and improve a service mechanism for normalized investment and financing of scientific and technological innovation and the development of scientific and technological enterprises.

　　The second is to build a platform for innovation and entrepreneurship competitions.Explore the introduction of market-oriented operation entities to undertake scientific and technological innovation and entrepreneurship competitions, and incite more innovative carriers and social resources such as universities, scientific research institutions, high-tech zones, technology business incubators and creative spaces to participate in the competition.

　　The third is to build a docking platform between the capital market and the technology market.Relying on the Science and Technology Achievements and Intellectual Property Exchange Center of Shenzhen Stock Exchange, we will build a national comprehensive service platform connecting the technology market and the capital market, and improve the tradeability and transformation efficiency of scientific and technological achievements.

　　The fourth is to build a service network platform in technology and finance.Optimize the evaluation, dynamic adjustment and long-term incentive mechanism of technology and finance service center system in the province, promote the extension of technology and finance service to counties (cities, districts) and towns, and give certain subsidies to the provincial technology and finance service center.

　　X. What are the requirements of the Implementation Opinions for overall financial support for scientific and technological innovation and prevention of financial risks?

　　While promoting financial support for scientific and technological innovation, we should actively guard against systemic financial risks. In this regard, the "Implementation Opinions" put forward three requirements.

　　The first is to establish a linkage mechanism.Science and technology, finance and other relevant departments should establish a working linkage mechanism and strengthen policy coordination and information sharing.

　　Second, it is necessary to strengthen financial support for scientific and technological innovation risk management.Supervise all kinds of financial institutions in Guangdong to strengthen the main responsibility of risk prevention and control while supporting the development of science and technology enterprises, and adhere to independent decision-making, risk-taking and steady operation.

　　The third is to promote the application of advanced technology in the financial field.Promote the deep application of technologies such as big data, artificial intelligence and blockchain in the financial field, and provide assistance for financial support for technological innovation and prevention and control of financial risks.