Three ministries: support insurance companies in setting up private equity funds to invest in the stock market and hold for the long term.

April 1st, the office of the China Banking and Insurance Regulatory Commission, along with two other departments, issued a notice on the implementation plan for the high-quality development of science and technology in the banking and insurance industry. The plan mentions deepening the reform pilot of long-term investment of insurance funds, supporting insurance companies to set up private equity funds, invest in the stock market and hold for the long term. It also includes launching pilot projects for technology companies' mergers and acquisitions loans, expanding the scope of pilot banks, regions, and companies, supporting technology companies, especially "lead" companies, in industry integration, and facilitating the circulation of capital. Furthermore, it involves carrying out integrated pilot projects on knowledge intellectual property finance, developing knowledge intellectual property financial services, and exploring the expansion of internal assessment pilot projects for intellectual property. Additionally, it emphasizes strengthening cooperation with venture capital institutions. It encourages banks to collaborate with asset management institutions, venture capital funds, government-guided funds, and industry investment funds to enhance information sharing and project promotion, explore full-process cooperation with various technology innovation funds, and engage in business such as "loans + direct investment" to provide credit support to selected investee companies. It also encourages insurance institutions to increase their support for venture capital investment institutions through diversified investment tools in accordance with market-oriented principles and to develop long-term and patient capital. Original text: Notice from the General Office of the China Banking and Insurance Regulatory Commission, the General Office of the Ministry of Science and Technology, and the General Office of the National Development and Reform Commission on Issuing the Implementation Plan for the High-Quality Development of Science and Technology in the Banking and Insurance Industry Jin Office Issuance [2025] No. 31 All financial regulatory authorities; science and technology departments in provinces, autonomous regions, municipalities directly under the Central Government, and separate state-planning cities; the Xinjiang Production and Construction Corps Science and Technology Bureau; the development and reform commissions in provinces, autonomous regions, municipalities directly under the Central Government, separate state-planning cities, and the Xinjiang Production and Construction Corps; policy banks, large banks, joint-stock banks, foreign banks, direct banks, financial asset investment companies, wealth management companies, insurance groups (holding) companies, insurance companies, insurance asset management companies, financial holding companies: In order to fully implement the spirit of the 20th National Congress of the Communist Party of China, and the second and third plenary sessions of the 20th Central Committee of the Communist Party of China, effectively implement the decisions and arrangements of the Central Economic Work Conference, the Central Financial Work Conference, and the National Science and Technology Conference, and follow the guiding opinions on "doing well in the five major areas of finance" issued by the General Office of the State Council (State Office Issuance [2025] No. 8), and explore the establishment of a science and technology financing system that is compatible with technological innovation, promote the virtuous cycle of "technology-industry-finance", accelerate the deep integration of technological innovation and industrial innovation, and jointly formulate the implementation plan for the high-quality development of science and technology in the banking and insurance industry. It is now issued to you for implementation. Please strengthen organization and implementation, seriously carry out in accordance with the tasks and objectives. General Office of the China Banking and Insurance Regulatory Commission; General Office of the Ministry of Science and Technology General Office of the National Development and Reform Commission March 13, 2025 (This document is forwarded to financial regulatory sub-bureaus and legal person financial institutions at the local level) Implementation Plan for the High-Quality Development of Science and Technology in the Banking and Insurance Industry In order to thoroughly implement the strategy of innovation-driven development, carry out major initiatives in science and technology finance, strengthen the financial services throughout the lifecycle of technology-based enterprises, increase the allocation of financial resources for technological innovation, promote deep integration of technological innovation and industrial innovation, boost the development of new productive forces, support the establishment of a modern industrial system, and accelerate the realization of the goal of building a strong science and technology country, this implementation plan is formulated. I. Basic Principles - Adhere to problem orientation. Targeting the "four orientations," starting from the demand for financial services in technological innovation, focusing on the bottlenecks, difficulties, and pain points in the support of technological innovation by the banking and insurance industries, aggregating high-quality financial resources, establishing a sound mechanism for science and technology finance, optimizing the institutional arrangements and service systems for science and technology finance, and providing strong financial service guarantees for technological innovation. - Adhere to market leadership. Conform to the laws of economic development, give full play to the decisive role of the market in resource allocation, and strengthen the position of enterprises in technological innovation. Financial institutions make independent decisions and manage their operations autonomously, providing science and technology financial services in accordance with market-oriented and rule-of-law principles. Financial regulators, science and technology, and development and reform departments collaborate to create a conducive environment for serving technological innovation. - Advance in a systematic manner. Coordinate and promote the various factors of science and technology finance development as an organic whole, develop a multi-level science and technology financial service system, accelerate the establishment of a diversified science and technology financial service supply system, promote the improvement of the mechanism for technological input, and effectively enhance the adaptability, targeting, and effectiveness of science and technology financial services. - Uphold safe development. Coordinate development with safety, emphasizing both commercial sustainable development and financial risk prevention. Clearly define the primary responsibilities of financial institutions for risk prevention and compliance management in science and technology finance, improve comprehensive risk management mechanisms, and ensure safety and controllability throughout the entire process of science and technology finance development. II. Main Goals Over the next five years, the banking and insurance industries will accelerate the establishment of a financial service system and mechanism compatible with technological innovation, gradually improve the science and technology financial system, continuously enhance specialized service mechanisms, product systems, professional capabilities, and risk management capabilities, continue the development of an external ecosystem, expand and improve the coverage, quality, and effectiveness of science and technology credit and insurance, provide more precise, high-quality, and efficient financial support for key areas and weak links of technological innovation, and accelerate the realization of high-quality development in science and technology finance. III. Strengthen the Construction of Science and Technology Financial Service Mechanisms (I) Improve organizational systems. Encourage financial institutions to explore and establish internal management forms suitable for science and technology financial services based on their businesses and local conditions, strengthen resource coordination, and leverage their respective service advantages. With the premise of safety and controllability, support appropriate authorization to specialized branches or subsections for science and technology finance. Encourage the accelerated introduction of composite talents with backgrounds in technology and industry, and improve the mechanism for cultivating talents in science and technology finance. (II) Optimize internal assessment and incentive control mechanisms. Support financial institutions in establishing a multi-dimensional evaluation system for the quality and effectiveness of science and technology financial services, increase the proportion of science and technology financial-related indicators in internal performance evaluations appropriately. Scientifically formulate standards and processes for due diligence exemption internally, apply the relevant requirements of the Notice of the China Banking and Insurance Regulatory Commission on Due Diligence Exemption of Inclusive Credit (Jin Rule [2024] No. 11) to technology-driven companies meeting inclusive credit conditions, and effectively enhance the proactiveness of business staff in supporting technological innovation. Increase the tolerance for non-performing loans from technology-driven enterprises appropriately, and dynamically adjust based on regional, industrial, and market factors. (III) Provide support for key areas of technological innovation and [End of text]Weak links in financial services. Encourage financial institutions to strengthen financial support for major national scientific and technological tasks and technology-based small and medium-sized enterprises. Provide financial services for national major science and technology projects, national strategic science and technology forces, and national level science and technology innovation platform bases. Coordinate support for traditional industry technological transformation and transformation, nurturing and developing emerging industries, and future industry layout. Provide high-quality financial services for strategic emerging industries, advanced manufacturing industries, high-tech manufacturing industries, high-tech service industries, knowledge-intensive industries, and other industries such as high-tech, specialized and innovative enterprises, unicorns, "hidden" champions, key enterprises in manufacturing industry chains for high-quality development, and implementing entities, etc. In the fields of "two new and one heavy", artificial intelligence, quantum technology, biotechnology, agricultural technology, green low-carbon, etc., provide equal services to private and foreign-invested technology-based enterprises and R&D centers.Improve the ecosystem of technology financial services. Support governments at all levels, technology-based enterprises, financial institutions, venture capital funds, third-party intermediary service organizations, etc. to jointly build a multi-level ecosystem of technology financial services. Encourage financial institutions to promote the development of international and regional technology innovation centers, comprehensive national scientific centers, science and technology innovation financial reform pilot zones, Ningbo national insurance innovation comprehensive pilot zone, Donghu science and technology insurance innovation demonstration zone, and the technology insurance innovation leading zone of the Lin-gang New Area in the China (Shanghai) Pilot Free Trade Zone for high-quality development. In response to the needs of regional coordinated development strategies, provide high-quality financial services for the transfer and transformation of cross-regional technology innovation achievements. With the support of national independent innovation demonstration zones, national high-tech industrial development zones, and other technology industrial parks, strengthen cooperation with R&D institutions, pilot verification platforms, technology innovation incubators and accelerators, to facilitate the transfer and transformation of intellectual property and industrial applications. Four. Strengthen the construction of technology financial product system. Increase the intensity of technology credit. Encourage banks to increase credit loans and medium- to long-term loans to technology-based enterprises, and flexibly set loan interest rate pricing and interest payment methods. Make full use of information such as intellectual property, innovation points system, technology contracts, and industry chain transactions to improve technology financial characteristic products. The specific method for calculating the working capital needs of technology-based enterprises can be determined based on actual management needs. For working capital loans with a long cash flow recovery cycle, the loan term can be appropriately extended, with a maximum of up to 5 years. For loans secured by intangible assets such as intellectual property, the purpose and use of the loan can be determined according to the loan contract, and the loan can be used for research and development and patent industrialization. SixOptimize technology insurance services. Guide insurance companies to provide insurance products tailored to technology-based enterprises, covering key areas such as research and development losses, equipment losses, and patent protection throughout the lifecycle of technology innovation activities. Based on the insurance needs of national major technology projects, develop new types of technology insurance products and improve mechanisms for risk dispersion in major technology research projects. Increase insurance supply for technology innovation talents and related practitioners to enhance the quality and effectiveness of insurance coverage in health management, pension services, professional liability, and other areas. SevenPromote technology financial policy experimentation. Expand the equity investment pilot of financial asset management companies in an orderly manner to regions with strong economic strength, a large number of technology enterprises, significant R&D investment, and active equity investment, and support eligible commercial banks to establish financial asset management companies. Deepen the pilot reform of long-term investment of insurance funds and support insurance companies in initiating the establishment of private equity funds, investing in the stock market and holding long-term positions. Conduct pilot programs for technology enterprises' mergers and acquisitions loans, study and expand the scope of pilot banks, regions, and enterprises, and support technology enterprises, especially "leading" enterprises, in industrial integration and smoothing of capital circulation. Launch a comprehensive pilot program for intellectual property finance ecosystem, develop intellectual property financial services, study the expansion of internal intellectual property evaluation pilots. EightStrengthen cooperation with venture capital and other institutions. Encourage banking institutions to enhance information sharing and project promotion with asset management institutions, venture capital funds, government-guided funds, and industrial investment funds, explore full-process cooperation with various types of technology innovation funds, conduct "loan + direct investment" business, and select invested enterprises for credit support. Encourage insurance institutions to support venture capital and other investment institutions with diversified investment tools according to market-oriented principles, and develop long-term and patient capital. NineSupport technology-based enterprise bond financing. Encourage banking institutions to provide underwriting services for technology-based enterprises that meet the conditions for issuing innovative bills, asset-backed bills, and asset-backed bonds. Support banks, insurance companies, asset management institutions, and others to increase investment in innovative bonds, promote insurance companies to invest in asset-backed securities, and other securitized products. Five. Strengthen the construction of professional capabilities in technology finance. TenStrengthen digital empowerment. Encourage financial institutions to increase investment in digital transformation, utilize technologies such as cloud computing, big data, artificial intelligence, machine learning, privacy computing, etc., develop digital business tools, integrate and display evaluation results of technology-based enterprises, enhance the ability to identify and select enterprises, improve operational management effectiveness and risk prevention and control. Support the application of GB 18030 "Information Technology Chinese Character Encoding Standard" to ensure smooth conduct of financial transactions. Strengthen the protection of financial consumer data privacy, promote effective protection and legal use of data. ElevenImprove technology financial risk-sharing mechanism. Implement the special guarantee plan to support technology innovation, develop financing guarantee services for technology-based enterprises, improve differentiated assessment and evaluation systems, and optimize credibility services for technology innovation guarantees. For technology insurance with lack of historical data and potential large losses, risks can be distributed through co-insurance bodies, reinsurance, and other means to reduce the financial burden of enterprises insuring. TwelvePromote enterprise information sharing. Promote the construction of information infrastructure in the field of technology innovation, accelerate the development of a system integrated, dynamically updated, and efficient and convenient mechanism for collecting, organizing, and sharing data elements of technology-based enterprises, and provide comprehensive, timely, and convenient information support for technology credit review and insurance pricing. ThirteenImprove third-party intermediary services. Promote the improvement of policies and regulations in the field of intermediary services, guide intermediary service agencies to establish a fair and reasonable fee mechanism, provide credible technology consultation, technology value evaluation, technical risk assessment, and other services, to provide reference for the development of technology financial business. Six. Strengthen the capacity building of technology financial risk control. FourteenEnhance risk identification. Encourage financial institutions to strengthen industry research on technology innovation, study in depth the differentiated characteristics and risk features of technology-based enterprises in the startup, growth, and mature stages. Encourage eligible financial institutions to comprehensively evaluate key factors such as industry norms guidance, enterprise innovation capabilities, R&D investment, technology team building, technology achievements and intellectual property value, R&D achievement transformation and market prospects, direct financing availability, etc., to achieve a panoramic evaluation of technology-based enterprises and improve the ability to identify technology risk characteristics. FifteenImprove credit approval. Encourage eligible bank institutions to establish a scientific and reasonable credit approval system that combines industry norms guidance, enterprise innovation capabilities, R&D investment, technology team building, technology achievements and intellectual property value, R&D achievement transformation and market prospects, and direct financing availability to achieve a comprehensive evaluation of technology-based enterprises and improve the ability to identify technology risk characteristics.Establish a specialized technology credit approval mechanism to promote risk management forward. Organize the training of dedicated approval and review personnel to enhance the professionalism and scientific nature of the review and approval process. Tailored to the characteristics of technology companies, comprehensively utilize a combination of online and offline credit approval models, gradually establish a hierarchical classification of enterprise-specific evaluation models or evaluation methods, develop differentiated declaration material templates, review points, and approval guidelines, and continuously improve the comprehensiveness of the evaluation index system for technology companies. Credit approval should not excessively rely on third-party guarantees and external evaluations.(16) Implement post-loan management. Financial institutions should strengthen the management of loan funds to prevent fund diversion and misuse. By comprehensively considering internal and external information, closely monitor the bank account behaviors of credit-receiving enterprises, market share changes, follow-up financing progress, changes in key personnel such as actual controllers and major technology research and development personnel, performance integrity, administrative and judicial situations, and overall consider the continuous operating ability of enterprises. Strengthen monitoring and early warning for technology-based enterprises, promptly identify potential risks, implement differentiated post-loan management requirements, develop targeted risk warning plans, and track and deal with them in a timely manner. (17) Establish an intelligent risk control system. Encourage eligible financial institutions to integrate digital risk control tools into the process of technology finance business. Develop artificial intelligence models for technology finance credit approval, strengthen deep learning model training, and apply the output of models to business approval scenarios under the premise of safety and controllability, improving customer selection and approval service capabilities. Continuously optimize intelligent monitoring and early warning rules for technology finance, empowering risk reduction management. VII. Organizational Guarantee (18) Strengthen organizational leadership. All financial regulatory authorities should clarify the leading departments and division of responsibilities for technology finance, and coordinate the development and security work of technology finance within their jurisdiction. Urge financial institutions to effectively improve the quality of technology finance statistics, comprehensively and accurately reflect the development of technology finance, and strictly guard against data falsification. Explore the establishment of a monitoring and evaluation system for technology finance, and study enhancing the positive incentive role of financial regulation. (19) Deepen collaboration from multiple parties. Financial regulatory authorities should strengthen collaborative efforts with technology and development reform departments within their jurisdiction, forming a synergy in policy guidance, coordinated measures, and joint research to promote information sharing among enterprises and promptly address practical issues faced by technology finance services. Encourage local technology and development reform departments to guide financial services in key areas of technology innovation through measures such as interest subsidies, premium compensation, and risk mitigation. (20) Timely summarize and communicate. Financial regulatory, technology, and development reform departments should timely summarize typical cases and best practices of technology finance. Organize various forms of publicity activities, exchange and share good practice experiences, and collaboratively promote the high-quality development of technology finance. This article is compiled from the official website of the "China Banking and Insurance Regulatory Commission." Editor: Liu Jiayin.