The Chinese government has introduced new policies to encourage the listing of qualified high-growth technology companies located outside major cities, in another move to foster innovation and accelerate the country's transition to technology-led growth.
The General Office of China's State Council issued a document earlier this month, saying that it would help qualified high-growth tech companies based in nearly 3,000 county level administration areas to obtain financing by making capital markets more available to such firms.
China's main-board in the Shanghai and Shenzhen Stock Exchanges, Small and Medium Enterprise Board, Growth Enterprise Board, the so-called New Third Board, as well as regional equity transaction markets will be more supportive of high-growth tech companies at the county level, which is one administrative level below cities, according to the document named Opinions on County-level Innovation-Driven Development.
The opinion says that the State Council will guide financial institutions to support county-level scientific and technological innovation, and use local science and technology resources more efficiently, as it views county-level innovation as the most critical and challenging element in its drive to upgrade China's economic growth.
At the same time, the State Council encouraged qualified regions to set up special funds to support the transition of scientific and technology achievements to commercial applications, potentially leading more counties to set up innovation parks as hundreds of cities have already done.
Private investors are encouraged to back small and medium-size tech firms in seed and early-growth stages. Companies are also encouraged to take post-subsidy expenditure measures such as issuing scientific and technological innovation coupons.
Companies are encouraged to innovate in the fields of air pollution control, soil remediation, water environment protection, and ecological protection and restoration, according to the document.