The surge of technological innovation and the rise of the digital economy have positioned tech-driven enterprises at the forefront of global economic transformation. These agile companies, characterized by innovative business models and rapid growth, serve as the engines propelling industrial upgrades worldwide. With their lightweight asset structures, they face heightened risks and, correspondingly, offer enticing returns. However, as they navigate the complexities of their funding needs, these enterprises present new demands on financial markets, emphasizing the necessity for enduring, reliable sources of financial backing to facilitate their research and market expansion.

In recent years, China has rolled out an impressive array of supportive policies aimed at fostering this new economic model. These initiatives encompass various aspects, including credit, insurance, financing guarantees, bonds, venture capital, and the capital markets. As a result, the flexibility and innovative capacity of financial markets have significantly improved, adapting more effectively to support technological enterprises. The central bank, for instance, has implemented structural monetary policy tools such as the technology innovation rediscounting program to guide financial institutions in increasing credit allocations for tech firms. In turn, local banks have proactively developed diverse financial products, like science and technology loans and talent loans, which utilize innovative strategies such as intellectual property and accounts receivable pledges to cater to the financing needs of technology companies at various stages of development.

Simultaneously, the direct financing market is experiencing a renaissance, where the efficiency of services supporting the entire lifecycle of tech innovation firms continues to strengthen. A diversified technological financial services system, comprising channels like venture capital, stock, and bond markets, is rapidly taking shape. Additionally, the regional equity market and government-guided industrial funds are successfully tapping into new sources of funding for technology innovation and emerging industries. The notable growth in financing figures over the past five years for small and medium-sized tech enterprises in China reflects this robust support. Loan balances for these businesses have soared, exceeding 2.5 trillion yuan, while their approval rates have climbed from 14% to a remarkable 47%. The increasing share of strategic emerging industry-focused funds within government-led funds—now accounting for half of the total fund volume—signals an encouraging trend in the financing landscape.

However, challenges persist. The capital supply for tech startups in China is still fraught with obstacles. Primarily reliant on indirect financing, banks confront elevated costs related to lending. Moreover, direct financing markets exhibit limited inclusiveness toward technology firms, facing hurdles such as restricted bond issuance and a relatively modest scale of venture capital. The reluctance of these markets to tolerate risk results in difficulties in fundraising and exiting investments. Moving forward, it is crucial to balance and optimize the interplay between direct and indirect financing while continually enriching the diversity of financial service offerings and channels.

To revitalize the indirect financing system, innovation in bank credit products is essential. Developing differentiated lending models that align with the growth trajectories of enterprises, enhancing credit guarantees, and fostering higher credit limits for tech firms are all vital strategies. Additionally, it is important to support a robust management system for credit management, guarantees, and collateral. Encouraging banks to create innovative credit products such as technology innovation loans or R&D loans, while simultaneously clarifying lending standards, will help promote a synergistic relationship between investment and lending, thereby encouraging the creation of long-term equity products by bank wealth management subsidiaries.

To further cultivate a vibrant venture capital market, enhancing capital inclusivity is paramount. Strengthening the government's guiding role, optimizing assessment criteria for funds, and increasing support for tech projects through shared platforms can catalyze collaboration between government initiatives and industry investments. Moreover, refining the "raise-invest-manage-exit" system for venture capital, coupled with differentiated regulations tailored to various types of investment institutions, will help establish a more conducive environment. Enhanced tax incentives aimed at promoting early, small-scale, long-term, and hard technology investments can also incentivize participation from various investment entities.

Development of sci-tech bonds represents another crucial area of focus. Loosening excessive regulations governing the inclusion of these bonds in interest-bearing liabilities, as well as releasing overly stringent requirements concerning R&D expenditures and revenue, will pave the way for a more accessible bond market. Establishing a credit evaluation system specifically for technology firms can ensure standardized practices within the bond market while fostering an equitable market landscape for enterprises of various ownership types. Additionally, trials for innovative tech bonds on designated boards, easing the conditions for issuing sci-tech real estate investment trusts (REITs), and reducing issuance costs are all strategic steps forward. Streamlining information disclosure and enhancing ongoing supervision—particularly concerning the flow of funds and operational conditions of the enterprises—will facilitate active trading of high-quality sci-tech bonds.

Lastly, creating a more comprehensive ecosystem for tech investment requires nurturing patient capital. Reforming the issuance and underwriting systems, refining standards for recognizing tech enterprises, and enhancing mechanisms for pricing new stock offerings are all integral to fostering a robust capital environment. As trading systems evolve, implementing a framework for investor suitability will effectively guide various long-term funds—such as pension, insurance, and bank wealth management funds—into the market. Expanding foreign-access connectivity initiatives and enhancing the range of market products available for trade will facilitate smoother flows of cross-border capital. Establishing stringent delisting criteria and optimizing de-listing processes will ensure smoother transitions for companies leaving the market, thereby fostering healthy competition and innovation.