By Lu Zhongyuan, Wei Jianing, Li Jianwei, Wang Zhao　

Date: 2004/04/20

Abstract:

The major approach of capital input into science and technology in China has been the earmarked loans for science/technology. The stock market financing and venture capital have been growing rapidly in the recent years, but the scale has been very limited. Currently the problems seen in this field are: declining loans from traditional channels, small enterprises facing great obstacles in acquiring credit; lack of alternative financing channels, and lack of effective supporting mechanisms for policy-oriented financing. The solution lies in innovation of financing institution. Based on the existing input channels, a sound financial service system for scientific investments should be established. In such a system, investments should be directed by market, government should be responsible for improving the policy environment, the enterprises should be the main responsible party in investment, and the financial sector should be the main channel.