“Seven government departments jointly issue guidelines on financial support for new industrialization”

According to the website of the People’s Bank of China, several Chinese government departments, including the PBOC, jointly issued the “Guidance on Financial Support for New Industrialization” (referred to as the “Guidance”). The document states that by 2027, a financial system supporting high-end, intelligent, and green development in manufacturing will be essentially mature, with more diverse financial products. Various financial instruments such as loans, bonds, equity, and insurance will be better coordinated while effectively preventing cross-sector financial risks, leading to improved service adaptability. Manufacturing companies will see their valid credit demands fully met, with increasing numbers and scales of bond issuances, alongside significantly enhanced equity financing levels.

The Guidance focuses on major strategic tasks of new industrialization, deepening supply-side structural reforms in finance, strengthening industry-finance collaboration, and improving the precision and effectiveness of financial support. It aims to provide high-quality financial services for building a modern industrial system led by technological innovation and advanced manufacturing, steadily advancing new industrialization, and accelerating the development of new productive forces. The approach emphasizes targeted policies, supporting industrial upgrades while preventing “internal-competition” scenarios.

The Guidance proposes optimizing financial policy tools to support breakthroughs in key technologies and products. Structural monetary policy tools will incentivize banks to provide medium- and long-term financing for critical industrial chains, including integrated circuits, industrial machinery, medical equipment, servers, instruments, foundational software, industrial software, and advanced materials. Financial institutions are encouraged to leverage appropriate products and tools to support industrial foundation reconstruction and major technical equipment projects. Technology companies achieving core technological breakthroughs will qualify for “green channels” in IPO financing, M&A restructuring, and bond issuance. Increased support will be directed toward first-of-its-kind major technical equipment, new materials, software versions, specialized SMEs, high-tech firms, unicorn companies, and key supply chain enterprises promoting new products.