China Banking Regulatory Commission, Ministry of Science and Technology and People's Bank of China, Guiding Opinions on Supporting Intensification of Innovation by Banking Financial Institutions to Launch a Pilot Project for Interlinked Investment in, and Lending to, Scientifically Innovative Enterprises

中国银行业监督管理委员会、科技部、中国人民银行关于支持银行业金融机构加大创新力度 开展科创企业投贷联动试点的指导意见

July 05, 2016 | BY

Susan Mok &clp articles &

Pilot banks may engage in hybrid equity-debt financing.

Clp Reference: 3500/16.04.15 Promulgated: 2016-04-15

Issued: April 15 2016

Applicability: The engagement in interlinked investment and lending by banking financial institutions and third party investment companies shall, mutatis mutandis, be handled in accordance with these Guiding Opinions (Article 8).

Main contents: With the new interlinked investment and lending arrangement, a pilot banking financial institution provides ongoing funding support to scientifically innovative enterprises that combines “extension of credit” and “equity investment” by a subsidiary in its group that has investment functions which, through relevant system arrangements, allows investment returns to offset credit risks and realize a matching of scientifically innovative enterprise credit risks and returns (Article 5).

clp reference:3500/16.04.15 issued:2016-04-15

Issued: April 15 2016

Applicability: The engagement in interlinked investment and lending by banking financial institutions and third party investment companies shall, mutatis mutandis, be handled in accordance with these Guiding Opinions (Article 8).

Main contents: With the new interlinked investment and lending arrangement, a pilot banking financial institution provides ongoing funding support to scientifically innovative enterprises that combines “extension of credit” and “equity investment” by a subsidiary in its group that has investment functions which, through relevant system arrangements, allows investment returns to offset credit risks and realize a matching of scientifically innovative enterprise credit risks and returns (Article 5).

clp reference:3500/16.04.15 issued:2016-04-15

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