China rolls out sweeping measures to channel capital into sci-tech innovation

China has unveiled a set of new policies aimed at strengthening the integration of technology and financing, as part of its push to build greater self-reliance in science and innovation.

In a joint notice issued on Wednesday, the Ministry of Science and Technology, along with six other top government agencies, outlined measures to direct long-term and patient capital into strategic tech sectors. The move is intended to provide stronger financial backing for national laboratories, leading tech firms and high-potential startups involved in major scientific missions.

The policy package includes plans to boost foreign investment in domestic tech enterprises by easing rules around equity and venture capital access. Pilot programs such as the Qualified Foreign Limited Partner (QFLP) scheme and cross-border financing channels will be expanded, while support will also be given to tech firms seeking overseas listings in line with regulations.

China also pledged to deepen capital market support for innovation-driven companies. Measures include optimizing IPO mechanisms and prioritizing financing for firms that achieve breakthroughs in core technologies.

A new national entrepreneurship investment guidance fund will be launched to nurture emerging and future industries. The fund will focus on accelerating the commercialization of major scientific discoveries and developing what officials call "new quality productive forces."

To improve access to credit, financial regulators will set up a dedicated mechanism within the banking system to identify and support tech-focused firms. Commercial banks will be encouraged to establish specialized branches for tech finance, especially in regions with concentrated innovation activity.

The new policies mark China's latest attempt to align financial resources with national innovation goals, amid rising global competition in advanced technologies.