Financial services regulators in Shanghai have issued a comprehensive policy document introducing 17 specific measures across four key areas. The move is designed to strengthen the positive cycle between technology, industry, and finance, while supporting the development of Shanghai and the broader Yangtze River Delta region as international hubs for technological innovation. These measures take aim at enhancing the overall quality and effectiveness of financial services for the science and technology sector.

The first pillar focuses on reinforcing the professional service foundation for tech finance. Banking and insurance institutions are being encouraged to establish specialized departments and branches dedicated to this field, complete with greater approval authority delegated to specialized teams and preferential resource allocation. The plan promotes the cultivation of employees with a hybrid skill set, combining industry knowledge with technical expertise. Additionally, institutions are urged to extend performance appraisal cycles for tech finance operations, clarify exemption policies for due diligence, and appropriately raise risk tolerance levels for technology loans and new insurance products. The use of advanced tools like artificial intelligence and big data is advocated to evaluate the innovative capabilities of tech firms and build specialized credit models tailored specifically for them.

In the second area, the policy calls for the creation of a comprehensive financial service system that covers the entire lifecycle of a business. Different financial instruments will be matched to technology companies at their distinct stages of development, whether that be startup, growth, or maturity. For credit business, the focus remains on supporting small and medium-sized enterprises, with a "hard technology" orientation, increasing the proportion of first-time loans, unsecured loans, and medium to long-term lending. Working capital loans for tech firms could be extended for up to five years, and the refinancing ratio for eligible enterprises is to be improved, with a commitment to renewing loans as they come due to provide continuous support for key technological breakthroughs. On the insurance front, coverage will be expanded to address multiple scenarios such as R&D activities, intellectual property protection, equipment security, and talent cultivation. Furthermore, financing channels will be broadened by guiding insurance funds to invest more heavily in venture capital, equity funds, and M&A funds, while deepening collaboration between banks and various tech-focused funds.

The third set of measures is aimed at building a collaborative ecosystem where financial institutions partner with a wider network of stakeholders. The plan encourages banks and insurers to work alongside government bodies, industry associations, technology parks, and investment institutions to deliver integrated financing solutions that combine equity, credit, insurance, and leasing services. There is also support for cross-regional technological collaboration through the G60 Innovation Corridor initiative. To fully unlock the value of intangible assets, the plan promotes further pilot programs for intellectual property finance, including advancing IP pledge financing and IP service trust businesses.

Finally, the fourth area addresses the establishment of a closed-loop risk control system with real-time management capabilities. Using digital tools and taking into account the unique characteristics of the tech industry and a company's growth cycle, the system will build differentiated risk identification models. Dedicated credit approval teams for tech companies will be formed, making technological innovation capability the core criterion for evaluation rather than relying heavily on physical collateral. Post-loan management will be strengthened with a tiered system of risk alerts and categorized handling mechanisms. Insurance companies are also encouraged to diversify the risk of major scientific research projects through co-insurance and reinsurance arrangements. The overall objective is to enrich tech finance supply while strictly maintaining the bottom line of risk prevention.

It was noted that in recent years, the regulator has guided local institutions through four major initiatives to improve tech finance. These efforts have yielded tangible results, with technology credit showing significant growth, expanding by over 12% year-on-year by the end of the first half of 2026. Insurance protection has also seen steady improvement, with the value of coverage for technology activities exceeding CNY 660 billion during the same period. At present, Shanghai is home to 36 specialized tech sub-branches and more than 150 further institutions with tech-specific functions, achieving near-comprehensive coverage of the city's key innovation areas. Looking ahead, the regulator will continue to guide banking and insurance institutions in the area to comprehensively improve the quality and efficiency of tech finance, focusing on building a multi-level and specialized supply system that continuously optimizes the financial service structure. This will further enhance the overall effectiveness of finance in empowering technological innovation and the development of new productive forces.