The Chinese mainland launched its first batch of sci-tech innovation bonds on Friday, marking the inauguration of a dedicated "sci-tech board" in the interbank bond market. A roadshow at the Beijing Financial Assets Exchange showcased the first eight firms to issue these bonds, underlining the new platform's role in funding cutting-edge research and technology development.
Backed by guidance from the People's Bank of China (PBOC), this sci-tech board allows financial institutions, tech enterprises, and equity investment funds to issue corporate bonds, enterprise bonds, and other debt instruments aimed at supporting scientific and technological innovation. Pan Gongsheng, governor of the PBOC, first outlined the plan in March, emphasizing the need for flexible, longer-maturity debt to match the long cycles of R&D projects.
Duan Dawei, senior vice president at iFLYTEK Co., Ltd., welcomed the move. "Innovation requires long investment cycles, cost-effective solutions, and a diverse toolkit of financial instruments," he said. "The new board's flexibility aligns perfectly with the unique financing needs of tech-driven enterprises."
The PBOC has revealed plans for nearly 100 market institutions to tap into this new channel, preparing over 300 billion yuan (roughly $41.7 billion) in sci-tech innovation bonds. Market participants expect this figure to grow as more issuers join the platform and fuel the next wave of technological breakthroughs in the Chinese mainland.
For young entrepreneurs, investors, and innovators across the globe, the launch signals a fresh opportunity to engage with the Chinese mainland's booming tech sector. By offering tailored financing tools, the sci-tech board could catalyze breakthroughs in artificial intelligence, green energy, biotech, and more, reshaping industries at home and abroad.
Reference(s):
cgtn.com
