Zhongguancun's financial technology sector has made significant progress due to support and cooperation from related state departments and relevant units in Beijing.
I. Zhongguancun's financial technology affairs have become an essential part in the construction of national scientific and financial systems.
Zhongguancun has released the "Opinions on the Establishment of the National Sci-Tech Finance Innovation Center in Zhongguancun Science Park." This is the first file on sci-tech finance at the national level. It is issued and implemented by the National Development and Reform Committee, Ministry of Science and Technology, Ministry of Finance, State Administration of Taxation, "One Bank and Three Commissions" (the general headquarters of the People's Bank of China, China Securities Regulatory Commission, China Insurance Regulatory Commission, China Banking Regulatory Commission), State Administration of Foreign Exchange, and the Beijing Municipal Government.
The file aims to build a sci-tech financial system in accordance with the needs of scientific and technological innovations in the park. It also determines Zhongguancun’s central role in national scientific and financial innovation and is expected to help drive the formation of a national scientific and financial innovation system.
II. Financial institutions and science and technology intermediary organizations in Zhongguancun
Different innovative financial institutions have been built in the Zhongguancun Science Park, such as banks, securities companies, guarantee agencies, micro-lenders, trust companies, accounting firms, law firms, asset appraisal firms, credit agency organizations, and scientific and technological intermediary organizations.
III. Construction of the "credit zone" Credit in Zhongguancun promotes the financing industry, pushing forward the park’s construction of a "credit zone." There are 3,600 members in the Zhongguancun Corporate Credit Promotion Association. The 8,000 enterprises in the park use 12,980 varied credit products. In addition, the credit star-rating system in Zhongguancun will be carried out to promote its credit incentive mechanism.
IV. Administrative organizations for national over-the-counter markets
Zhongguancun has accelerated company cultivation and development in the park. There are 33 new listed Zhongguancun companies in 2012, with 136 other companies preparing to be listed. In addition, 52 companies have started or finished directional capital increases, with a total financing capital of 2.2 billion yuan ($346.5 million) and an average price-earnings ratio of 22.
Zhongguancun has created more communication opportunities with national securities regulators, such as the China Securities Regulatory Commission, to promote the foundation of administrative organizations for over-the-counter markets in Beijing. In May, a preparatory group for over-the-counter markets was set up in Beijing.
V. More listed companies in Zhongguancun
Zhongguancun improved its interaction platform among capital market investors and encouraged the Shenzhen Stock Exchange to build a remote opening center and a capital road-show center in Beijing. In 2012, listed companies in the park reached 223, including 144 domestic and 79 foreign firms. IPO financing volume reached 79.19 trillion yuan ($299.25 billion).
Among them, 61 companies were listed in the growth enterprise market, accounting for one-seventh of the total number in China. The effect of a "Zhongguancun plate" in the growth enterprise market was strengthened.
VI. Science and technology credit innovations help solve financing problems for companies
As many as 17 banks have established special financial institutions for science and technology companies in the park. The Bank of Beijing and China Construction Bank opened their Zhongguancun branches. Beijing Zhongguancun Sci-Tech Guaranty Ltd. has provided loan guarantees of 610 billion yuan ($96 billion) for enterprises in the park, including 88 billion yuan ($13.86 billion) in 2012.
These banks have disbursed credit worth 133 billion yuan ($20.95 billion), with no breach of trust cases. They also provided credit insurance of 20 billion yuan ($3.15 billion) and trade finance loans worth 1 billion yuan ($157.5 million). A collateralized loan on intellectual property of 9 billion yuan ($1.42 billion) was also generated.
VII. Zhongguancun's leading role in the venture capital sector
Zhongguancun pushed forward the establishment of a batch of equity investment funds after investigating the needs of different companies. In addition, entrepreneurship mentors provided professional venture guidance to 30 companies in the park.
Zhongguancun plays a leading role in China's venture capital sector. In the first half of 2012, Zhongguancun generated 127 venture capital cases with a total investment volume of 49.8 billion yuan ($7.84 billion), accounting for 31.7 percent of the nation’s total.
VIII. New scientific and financial innovation projects
Zhongguancun took efforts to promote private placement bond experiments for small- and medium-sized enterprises and the development of financing leases. In addition, it also extended cooperation with the Chinese Technology Exchange, building a collaborative service system of intellectual property evaluation, financial services and trading disposal.
At the same time, cooperation between credit institutions and venture investment agencies was also promoted in the science park, further expanding the size of mortgage credit for knowledge property rights.
Edited by Michael Thai
