(Yicai Global) June 11 -- Shanghai's government has stepped up its measures to support privately owned enterprises' financing needs, encouraging them to get listed on the science and technology innovation board that may be launched anytime now.
Shanghai will support local private tech firms, even small ones, to go public on the sci-tech board, as well as other mainland markets, according to a document published by the city's administration today.
The upcoming sci-tech board strives to ease listing requirements for Chinese tech companies. The technical system is ready for launch, China Daily reported today, citing Li Chao, vice-chairman at the China Securities Regulatory Commission.
Shanghai's initiatives aim to provide equal financing opportunities for privately owned firms, set reasonable maturities for loans, as well as support mergers and acquisitions, bond issuance, refinancing and new credit products.
The move involves offering CNY20 billion (USD2.9 billion) bank and secured loans to small and mid-sized private firms. The city will offer at least CNY10 billion in refinancing for small and micro-sized private firms in key fields such as technical innovation and advanced manufacturing. It aims to provide a CNY15 billion rediscount for these companies.
Shanghai will add CNY1 billion in fiscal funds annually for three straight years since this year to supplement venture capital and angel investments. It will also step up efforts to form equity investment funds worth CNY100 billion.
The new initiatives also allow insurance companies to provide long-term low-cost financial support for qualified private companies by investing in the latter's equity, debt, and asset management programs.
Editor: Emmi Laine