Financial services geared toward tech players

Local financial institutions and equity exchange platforms have stepped up efforts to offer targeted financial services for tech players, especially small and micro businesses, and shore up the real economy.

An ecosystem of professional services providing integrated support to consolidate Shanghai's position as a technology and innovation center has gradually taken shape, according to a news briefing on Thursday.

A dedicated equity trading platform by the Shanghai Equity Exchange for small and micro firms has already attracted over 200 businesses since its launch last month, said Deputy General Manager Chen Yanyan.

Since the setting up of the exchange in 2012, the combined value of total equity financing reached 195.4 billion yuan (US$26.9 billion) and total debt financing was 108.6 billion yuan and served more than 13,000 enterprises.

At the same time, an alliance has taken shape to combine the expertise of commercial banks, securities firms, equity investment industry associations, and professional service institutions to provide targeted services for small businesses.

Officials at local branches of commercial lenders and insurers see increasing opportunity to combine their expertise and provide wider coverage of financial services during different development stages for small businesses.

According to Deputy Director Zhou Tao at the Shanghai branch of the China Construction Bank, recent partnerships with local innovation incubators has allowed the bank to target financing for small and micro tech startups.

Industrial and Commercial Bank of China Shanghai Branch Vice Chairman Xu Yanfeng also plans dedicated measures with three sub-centers for technology financial service already set up in the city (in the Zhangjiang, FTZ area and Caohejing region).

The bank also invites external service providers to leverage their expertise and work on suitable credit ratings for early-stage businesses.

Assistant General Manager and Board Secretary of China Pacific Property Insurance Co, Tao Lei, believes a proper risk contingency plan for startups is also essential.

In the case of the failure of research projects in the early stage or during the middle test stage, it has offered insurance plans for those who seek to bring lab research results into early stage production in niche sectors, such as such as new materials.

It has been targeting research-oriented enterprises and in 2023 such insurance plans have covered 105 companies in 2023 with total of 14.2 billion yuan of protection amount.