Financial -living water- irrigates the fertile ground for scientific and technological innovation, Shanxi smoothes the -technology-industry-finance- channel_1
On October 15th, during an interview, Niu Qingshan, Deputy Director of the Shanxi Provincial Department of Science and Technology, emphasized the crucial role of financial support in technological innovation. “Technology innovation cannot thrive without financial backing,” he stated, highlighting the efforts made in recent years to seamlessly integrate technology with finance.
At a themed press conference organized by the Shandong Provincial Party Committee’s Publicity Department and the Shanxi Provincial Government’s Information Office, officials from the Shanxi Provincial Department of Science and Technology provided insights into their initiatives and addressed questions from reporters.
Niu explained that the Department has established a working group at the provincial level in collaboration with the Shanxi branch of the People’s Bank of China and twelve other departments. This team has drafted implementation guidelines for financial support aimed at technology-based enterprises and action plans for advancing technology finance, among other key documents. He mentioned that these efforts are centered around refining the financial policy framework supporting technological innovation, establishing a solid foundation for Shanxi’s technology finance sector.
In 2022, the Department, along with the Provincial Department of Finance and the Provincial Bureau of Local Financial Supervision, introduced the “Management Measures for Special Technology Finance Projects and Funds,” creating a specialized fund within the Shanxi technology plan system. This fund aims to encourage financial institutions—including banks, guarantee companies, private equity funds, and investment firms—to actively participate in technological innovation through methods such as loan interest subsidies and risk compensation.
Over the past three years, Shanxi has expanded the range and scale of its technology finance initiatives, investing approximately 37.68 million yuan to attract around 10.1 billion yuan in financial capital. Currently, the province is working to establish a 2 billion yuan provincial technology innovation angel (seed) investment fund to further stimulate investment and financing in technology.
To improve the effectiveness of financial resource services, the Shanxi Provincial Department of Science and Technology has formed strategic partnerships with eight banks, including ICBC, Agricultural Bank of China, and Bank of China. These partnerships encourage banks to develop specialized and independent technology finance subsidiaries and exclusive credit products.
To address the issue of information asymmetry between banks and enterprises, the department launched the “Shanxi Technology Finance Information Service Platform,” creating a communication “direct line” for financial institutions and technology enterprises through both online and offline channels. This initiative is part of a broader effort to establish a comprehensive multi-tiered technology finance service system, including bank credit, venture capital funds, technology insurance, corporate bonds, and capital markets.
Focusing on the financing needs of enterprises located in the Jin Chuang Gu innovation hub, the Shanxi Provincial Department of Science and Technology has conducted concentrated training for corporate financing presentations and hosted the 2024 Shanxi Technology Finance Investment and Financing Jin Chuang Gu matchmaking conference. During this event, five financial institutions signed investment agreements totaling 69.12 million yuan with twelve companies. Financial management bodies and various financial institutions are committed to supporting Jin Chuang Gu’s development, helping resident enterprises secure critical funding and boosting their confidence while setting a precedent for early, small, long-term, and hard-tech investments.
Looking ahead, the Shanxi Provincial Department of Science and Technology plans to collaborate with relevant departments to intensify efforts in advancing the province’s technology finance work, aiming to achieve new successes that will robustly support Shanxi’s high-quality development and modernization initiatives.