Financing to ease for small tech firms

China will improve delivery of financial services to small technology companies by promoting innovation in the financial system, People's Bank of China announced in a statement jointly released with five other government entities on Wednesday.

The central government has encouraged banks to set up branches specializing in financial services for small and medium-sized enterprises.

It will also allow private capital to be used to create small and medium-sized banks under strong supervision.

Qualified microcredit and leasing companies are encouraged to raise money for small technology enterprises by converting assets to securities and issuing bonds.

Banks should formulate measures to expand credit services for small technology enterprises by giving incentives to credit authorizers and applying duty exemptions, the bank said.

China will strive to develop intellectual property rights "pledge financing" by enhancing the ability to evaluate, register, trust and circulate intellectual property rights. The government will also actively promote patent insurance.

To maximize the effort to promote financial services development for technology companies, China will establish an interdepartment, cross-level coordination system that will involves the Ministry of Science and Technology, the Ministry of Finance and financial regulatory agencies, according to the bank.