China's private firms pioneer tech innovation amid policy support

Building on this foundation, China has introduced innovative financing mechanisms to further diversify funding channels. A key move was the introduction of a sci-tech board in its bond market in May, which aims to better cater to the financing needs of technology firms.

Since its launch, the new platform has attracted a wide range of participants, with 288 entities issuing approximately 600 billion yuan in technological innovation bonds by the end of June. A prime example is China's leading AI company iFlytek, which successfully issued 800 million yuan technological innovation bonds with a coupon rate of 1.83 percent.

"We will spend the majority of the funds we raise on technological research, development and application, while continuously strengthening our technological advantages," an iFlytek spokesperson said.

Currently, 63 percent of China's A-share listed companies are private enterprises. In particular, private companies account for 74 percent of listings on the country's Nasdaq-style Science and Technology Innovation Board, reflecting their dominant presence in both China's capital markets and technological landscape.

Amid a raft of policies to ramp up private sector growth, the NDRC has set up a specialized bureau to promote the sector's development. As the country's top economic regulator, the NDRC has established a multilayered mechanism for communication and problem-solving between private companies and relevant government departments at all levels nationwide.

Looking ahead, Zhang Xiaolan, a researcher with the State Information Center, said that the development of new quality productive forces will present vast opportunities for the private sector. "With the implementation of a series of pragmatic measures, the innovation vitality and creativity of private companies will be continuously stimulated, thereby injecting strong momentum into the high-quality development of China's economy," the researcher said.

Xinhua