China has unveiled a comprehensive financial ecosystem to accelerate technological self-reliance, featuring a massive national venture capital fund approaching 1 trillion yuan ($144.45 billion). The announcement came from Pan Xiaodong, Secretary General of the Ministry of Science and Technology, during a Friday press briefing in Beijing.
The groundbreaking initiative represents China’s strategic push to establish robust technology-finance integration, targeting early-stage enterprises specializing in hard-tech innovations with long development cycles. The ministry has coordinated with eight government bodies including the People’s Bank of China to implement this financial framework, already demonstrating significant progress since its policy introduction last year.
Complementing the primary fund, authorities have established supplementary financial instruments exceeding 350 billion yuan through collaborations with financial institutions and local governments. These include specialized technology-industry integration funds and secondary market vehicles designed to optimize venture capital circulation and deployment efficiency.
Concurrent banking sector enhancements have substantially expanded credit accessibility for tech enterprises. The relending quota for technological innovation and transformation has been elevated to 1.2 trillion yuan, accompanied by reduced interest rates of 1.25 percent and broader eligibility criteria.
Implementation of a specialized guarantee program has facilitated contracts totaling over 390 billion yuan between 26 banking institutions and technology firms. Outstanding loans to technology-focused small and medium enterprises reached 3.63 trillion yuan by December 2025, reflecting a robust 19.8 percent annual growth rate.
Capital market reforms have simultaneously strengthened service capacity for innovation sectors, with targeted enhancements to the Science and Technology Innovation Board (STAR Market) improving inclusiveness and adaptability. The bond market has emerged as a vital financing channel, with various entities issuing 1.8 trillion yuan in technology innovation bonds throughout 2025, creating sustained low-cost financing opportunities for financial institutions and technology enterprises alike.