Original Title: Implementation Opinions of the Huzhou Municipal People’s Government Office on Reform and Innovation in Science and Technology Finance

To the People’s Governments of All Districts and Counties, and All Units Directly Under the Municipal Government:

To thoroughly implement the top-priority strategy of building a city strong in talent and innovation, to establish Huzhou as a premier national destination for talent-driven innovation and entrepreneurship, to further strengthen financial support for scientific and technological innovation and talent-led entrepreneurship, and to focus on building a framework for the coordinated development of green finance and technology finance, these Implementation Opinions are hereby formulated with the approval of the Municipal Government.

I. General Requirements

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will earnestly implement the spirit of the 20th National Congress of the Communist Party of China, the Central Economic Work Conference, and the Central Financial Work Conference. Taking the “Seeing a Beautiful China in Huzhou”as the overarching platform and driving force, and taking financial support for the construction of the National Sustainable Development Agenda Innovation Demonstration Zone as the main thread, we will explore the establishment of a technology-finance service system that meets the full-lifecycle financial needs of technology-based enterprises. We will promote the deep integration of finance, technology, talent, and industry, form a sound ecological landscape where financial supply and demand are well-matched, and provide strong momentum for accelerating the creation of the “Six New Huzhou” and building a model city of ecological civilization at a high level.

II. Development Goals

By the end of 2025, we aim to have basically established a sound, well-structured, efficient, and fully supported tech-finance ecosystem. This will help continuously expand financing channels for technology-based enterprises, effectively meet their financing needs, and steadily reduce financing costs, thereby further stimulating the growth momentum of technology-based enterprises and fostering the development of a group of strategic emerging industries that are focused on key priorities and oriented toward the future.

— More Adequate Supply of Tech-Finance Resources. With the goal of enhancing the coverage, accessibility, and satisfaction of financial services, we will encourage financial institutions to provide targeted support for the development of technology-based enterprises. By the end of 2025, we aim to facilitate the development of more than 50 innovative tech-finance products by financial institutions, with the outstanding loan balance for technology-based small and medium-sized enterprises exceeding 120 billion yuan.

— The supportive role of capital markets will be further enhanced. With a focus on promoting the coordinated development of capital and technological innovation, we will optimize the financing structure for technology-based enterprises. By the end of 2025, we aim to have more than 70 listed companies. We will secure more than 30 billion yuan in new equity financing for technology-based enterprises. We will establish more than 10 new technology-focused industrial funds, with a total fund size of no less than 20 billion yuan.

— The tech-finance organizational system will be further strengthened. We will build a tech-finance organizational system centered on banks, insurance companies, local financial institutions, and emerging financial organizations, supplemented by financial ecosystem enterprises such as intermediaries and research institutions, to provide robust support for the differentiated financial needs of technology-based enterprises. By the end of 2025, we aim to establish more than 10 new institutions specializing in tech-finance services and attract more than 20 financial ecosystem enterprises.

III. Key Tasks

(1) Establish an Enterprise Evaluation System and Incubation Pool. Establish an incubation pool for technology-based enterprises, incorporating technology-based small, medium, and micro enterprises as well as talent-driven enterprises with strong growth potential, high technological content, and broad development prospects into the pool, and implement dynamic adjustments and tiered management;Integrate city-wide data resources on technology-based enterprises to establish a classification and evaluation system. This will enable a comprehensive profiling of enterprises’ innovation attributes and capabilities, serving as a reference for financial institutions to provide differentiated support and for statistical monitoring, thereby enhancing the precision of financial services. A dedicated “Technology-Based Enterprises” module will be established within the Green Finance Comprehensive Service Platform to improve the level of digital and refined management and service.(Responsible Departments: Municipal Science and Technology Bureau, Municipal Bureau of Economy and Information Technology, Municipal Party Committee Talent Office, Municipal Financial Office, People’s Bank of China Huzhou Branch, Huzhou Regulatory Bureau of the National Financial Regulatory Administration, Municipal Big Data Bureau, and governments of all districts and counties)

(2) Establish a multi-tiered science and technology finance organizational system. Promote the expansion and quality improvement of specialized science and technology finance service institutions, and support banks and insurance institutions in establishing science and technology finance divisions or specialized teams. Encourage financial institutions to apply for science and technology finance pilot programs at higher levels to secure preferential treatment in terms of policies, funding, approval authority, and institutional personnel.Encourage local commercial banks to increase credit support and services for technology-based enterprises. Leveraging the South Taihu Green Finance Center, actively attract licensed financial institutions, emerging financial organizations, and financial ecosystem enterprises to establish operations there, fostering the development of a cluster of financial organizations that provide full-lifecycle services to technology-based enterprises. (Responsible Departments: Huzhou Regulatory Sub-bureau of the National Financial Regulatory Administration, Huzhou Branch of the People’s Bank of China, Municipal Financial Affairs Office, Municipal Finance Bureau, South Taihu New Area Administrative Committee)

(3) Strengthen Policy Support for Financial Institutions. Promote financial institutions to refine product offerings, pricing mechanisms, and risk management systems tailored to the characteristics of technology-based enterprises. Optimize internal policies such as transfer pricing and due diligence exemption to alleviate the challenges of “difficult and expensive financing” faced by technology-based enterprises. Support banking institutions in establishing credit approval processes and credit evaluation models suited to the characteristics of technology-based enterprises, and appropriately increase risk tolerance for loans to such enterprises.Encourage banking institutions to fully utilize re-lending and rediscounting funds to increase credit disbursements to eligible technology-based enterprises. Encourage banks and insurance institutions to incorporate technology finance operations into their internal performance evaluations. Support technology-based enterprises in obtaining unsecured loans, first-time loans, and loan renewals. (Responsible Departments: People’s Bank of China Huzhou Branch, Huzhou Regulatory Bureau of the National Financial Regulatory Administration, Municipal Financial Affairs Office)

(4) Innovate technology finance products and services. Support banking institutions in innovating supply chain financial services by leveraging credit reporting infrastructure such as the China Credit Information Service’s Accounts Receivable Financing Service Platform and the Unified Registration and Publicity System for Movable Property Financing.Vigorously develop businesses such as intellectual property pledge loans and equity pledge loans, and provide interest subsidies of up to 150,000 yuan to technology-based enterprises that obtain bank loans by pledging patent rights or trademark rights. Encourage insurance institutions to develop technology insurance and intellectual property insurance products covering R&D, production, and sales stages for technology-based enterprises, and provide premium subsidies of up to 100,000 yuan to technology-based enterprises that purchase intellectual property insurance.Encourage banking institutions to collaborate with investment firms, insurance companies, and financial leasing companies to promote service models such as investment-loan linkage, investment-loan-insurance linkage, and investment-leasing linkage. Support government-backed financing guarantee institutions in expanding their network of partner banks and the scope of financing guarantees, and explore business models such as “options plus guarantees” to support the development of technology-based enterprises. Award government-backed financing guarantee institutions an annual incentive equivalent to 2% of the total new financing guarantees provided to technology-based small and micro enterprises, with a maximum total of 5 million yuan.Strengthen the innovative linkage between technology finance and the digital yuan pilot program, and encourage the launch of digital yuan credit and insurance products in the technology finance sector. (Responsible Departments: People’s Bank of China Huzhou Branch, Huzhou Regulatory Bureau of the National Financial Regulatory Administration, Municipal Finance Bureau, Municipal Financial Affairs Office, Municipal Science and Technology Bureau, Municipal Market Regulation Bureau)

(5) Strengthen direct financing for technology-based enterprises. Establish an investment and financing system covering the entire lifecycle of technology-based enterprises. Establish a science and technology innovation master fund to invest in Huzhou’s science and technology innovation projects and emerging industrial chains. Expand the scale of the “Angel Fund” and “Phoenix Fund” to provide financial support for technology-based enterprises in their start-up and growth phases.Establish and improve a mechanism for error tolerance and exemption from liability for government industrial investment funds, explore performance evaluations based on the entire fund lifecycle, and guide them to better fulfill their role in investing early and in small-scale enterprises. Regularly compile a list of technology-based enterprises with equity financing needs, and collaborate with equity and venture capital institutions both within and outside the province to create online and offline investment and financing matching platforms, attracting social capital to invest in Huzhou.Encourage leading enterprises in industrial chains to take the lead in establishing industrial development funds and setting up business incubators, adopting an “incubation + investment” model to increase direct investment in technology-based enterprises. Deepen the pilot program for Qualified Foreign Limited Partners (QFLP) to attract more foreign investment. Support eligible technology-based enterprises and venture capital institutions in issuing science and technology innovation bills and science and technology innovation corporate bonds. Provide policy subsidies of up to 1 million yuan to technology-based enterprises that raise funds through the issuance of intellectual property securitization products.(Responsible Departments: Municipal Financial Affairs Office, Municipal Finance Bureau, Municipal Science and Technology Bureau, People’s Bank of China Huzhou Branch (State Administration of Foreign Exchange Huzhou Sub-bureau), Municipal Bureau of Economy and Information Technology, Municipal State-owned Assets Supervision and Administration Commission, Municipal Market Regulation Bureau, Municipal Commerce Bureau, Municipal Industrial Group, Municipal Talent Group, and governments of all districts and counties)

(6) Accelerate the listing of technology-based enterprises. Deepen the implementation of the upgraded versions of the provincial and municipal "Phoenix Action" plans, establish a pool of technology and talent-driven enterprises for listing cultivation, provide professional guidance services in areas such as policy, legal affairs, finance, and market selection, and promptly coordinate to resolve various issues arising during the listing process.Deepen strategic cooperation with securities regulatory authorities and stock exchanges to jointly promote the listing of high-quality technology-based enterprises on the "Specialized, Refined, Unique, and Innovative" board of the Zhejiang Equity Exchange Center, the National Equities Exchange and Quotations (NEEQ), the STAR Market, the Growth Enterprise Market (GEM), the Beijing Stock Exchange, and the Hong Kong Stock Exchange. Provide phased rewards of up to 20 million yuan to enterprises that successfully list.Establish a "green channel" for enterprises applying to list on the STAR Market regarding patent applications and other matters, providing conveniences for patent examination or expedited preliminary review, and supporting them in meeting the required evaluation standards for science and technology innovation attributes as soon as possible. (Responsible Departments: Municipal Financial Affairs Office, Municipal Party Committee Talent Office, Municipal Finance Bureau, Municipal Human Resources and Social Security Bureau, Municipal Market Regulation Bureau, and governments of all districts and counties)

(7) Establish a statistical and evaluation system for technology finance. Research and establish a comprehensive statistical and evaluation system for technology finance. Develop separate statistical indicator systems focusing on credit financing, insurance, and direct financing channels for technology-based enterprises. Conduct regular statistical analyses to promptly assess the development of technology finance and inform policy decision-making. Incorporate financial institutions’ support for technology-based enterprises into the evaluation of their contribution to local economic development. Financial institutions recognized for annual technology finance innovation cases will receive bonus points in the annual assessment of financial support for local economic development.(Responsible Departments: Municipal Science and Technology Bureau, Municipal Finance Bureau, Municipal Bureau of Economy and Information Technology, People’s Bank of China Huzhou Branch, Huzhou Regulatory Sub-bureau of the National Financial Regulatory Administration, Municipal Financial Affairs Office)

(8) Promote financial support for talent-driven innovation and entrepreneurship. Improve the financial service mechanism for talent-driven enterprises, optimize the teams of financial specialists and advisors, and establish a closed-loop workflow for identifying, resolving, providing feedback on, and supervising financing issues faced by such enterprises to create an optimal financial service ecosystem for talent. Deepen the implementation of the "Hundred Banks Benefiting a Thousand Talents" initiative, encouraging financial institutions to intensify innovation in specialized financial products such as "Talent Loans," "Talent Insurance," and "Talent Investment," thereby expanding the coverage of financial services for talent-driven enterprises and reducing their financing costs.Expand the scale of the "Talent Fund," strengthen cooperation with leading fund managers, and effectively advance both investment in and recruitment of talent-driven enterprises to promote the deep integration of the financial chain, innovation chain, and talent chain. Increase financing support for talent-driven enterprises by providing interest subsidies on loans to such enterprises according to established standards. (Responsible Departments: Municipal Financial Affairs Office, Municipal Party Committee Talent Office, Municipal Finance Bureau, People’s Bank of China Huzhou Branch, Huzhou Regulatory Bureau of the National Financial Regulatory Administration, Municipal Industrial Group, Municipal Talent Group)

IV. Support Measures

(1) Strengthen Organizational Leadership. Establish a special task force for science and technology finance development led by a relevant municipal government official, with responsible officials from each district, county, and relevant municipal departments serving as members. The task force’s office will be housed within the Municipal Financial Affairs Office, responsible for coordinating and advancing all tasks. All municipal departments must enhance interdepartmental coordination and ensure implementation in accordance with their respective responsibilities. District and county governments should establish corresponding working groups to form a coordinated, top-down work system. All financial institutions across the city must take the initiative and earnestly implement the work requirements.

(2) Clarify Responsibilities. The Municipal Financial Affairs Office and the Municipal Science and Technology Bureau shall take the lead in coordinating the resolution of issues arising during implementation. Relevant municipal departments must formulate specific implementation plans and policy guidelines, define annual work objectives, and implement them on a rolling basis while iteratively refining them. They shall establish and improve a work mechanism featuring efficient coordination and closed-loop management, and strengthen full-process monitoring and guidance. All districts and counties must develop detailed supporting plans and task lists to ensure the effective implementation of all tasks.

(3) Intensify Publicity Efforts. Dynamically compile and monitor work-related information, and promptly summarize and deepen the new mechanisms, measures, and methods for reform and innovation adopted by districts, counties, and financial institutions. Make full use of various media and channels, including television, the internet, and newspapers, to publicize exemplary cases of technology-driven finance through diverse formats and channels, fostering a positive atmosphere for jointly advancing reform and innovation in technology-driven finance.

These guidelines shall take effect on January 15, 2024, and remain valid until December 31, 2025.

Appendix: List of Key Tasks for Technology Finance　　　

Office of the Huzhou Municipal People’s Government

December 29, 2023