"Besides commercial banks and guarantee-providing institutes, Zhongguancun Technology Property Rights Exchange and Zhongguancun Enterprises Credit Union should play a bigger role," said Ren Ranqi, vice-director of the Administrative Committee of Zhongguancun Science Park.

Established in March, Zhongguancun Technology Property Rights Exchange has specialized in helping high-tech companies, especially small and medium groups, and newly developed technologies obtain funding and support.

"Operated in line with market principles, the exchange creates a smooth channel for the entry and withdrawal of venture capital," said Ren.

So far, more than 200 enterprises or technologies have listed on the market with trading volume expected to reach 10 billion yuan (US$1.2 billion) this year.

Insiders regard Zhongguancun Technology Property Right Exchange as a third-board market, which provides a convenient and smooth fund-raising platform for small and medium enterprises and offers a transparent and efficient investing channel for venture capitalists.

Sources from the Administrative Committee revealed that the exchange is to offer capital aids for the first 500 enterprises entering the market as part of a new promotion.

"To guarantee the investors' interest and enhance their confidence, Zhongguancun Enterprises Credit Union is to be launched this year," said Ren.

"The union will be composed of high-tech companies, incubator operators, commercial banks and some other financial institutes." However, he refused to reveal the detailed operation plans for the union.

(China Daily April 8, 2003)