Beijing advances high-tech finance system

Beijing is rapidly building a financial system that supports technology innovation across the entire development chain, according to a report reviewed Wednesday at the 20th session of the 16th Standing Committee of the Beijing Municipal People's Congress. 

Beijing has established a comprehensive financial framework that includes government-guided funds, bank credits, tech insurance, and capital market tools. A newly created, large-scale government investment fund has raised 104 billion yuan in social investment, while the city's private equity and venture capital assets now total 3.79 trillion yuan, the largest in China. In addition, more than 60% of listed companies in Beijing are high-tech firms.

As a key pilot in tech-finance reform, Zhongguancun Sci-Tech Innovation Financial Service Center is expanding its operations in Haidian district and Beijing Economic-Technological Development Area. The center has handled more than 30 billion yuan in business over past three years. Pilot programs for mergers and acquisitions as well as research and development loans have also made steady progress.

Small and medium-sized enterprises (SMEs) stand to benefit the most from these efforts. More than 80% of the center's clients are SMEs, and over 90% are specialized and innovative companies.

To address high financing costs and difficulties in pricing risk for early-stage projects, the municipal legislature's education, science, culture, and health committee recommended improving incentive and restraint mechanisms, encouraging financial institutions to move beyond traditional financial metrics and incorporate R&D intensity, patent quality, and other innovation indicators. State-owned investment institutions should be evaluated on long-term performance rather than annual or single project gains, according to the committee.

The committee also proposed building a unified credit service platform for Beijing enterprises, integrating multi-source data and using technologies such as blockchain and artificial intelligence to create more accurate corporate credit profiles and improve valuation, data sharing, and credit assessment.