Chhina aims to nurture a more diversified financial system to help upgrade the manufacturing sector, Chinese authorities said in a guideline yesterday.
A more advanced and innovative manufacturing needs to be fostered to enhance its competitiveness, with more funds from domestic financial institutions flowing into core technology and advanced equipment providers, according to the guideline co-released by five authorities, including the People's Bank of China and the Ministry of Industry and Information Technology.
China needs long-term support from domestic financial institutions to boost innovation in manufacturing and reduce reliance on advanced technologies from abroad, the guideline said.
Domestic banks are encouraged to help fundraising in key industries such as information technology, advanced equipment, new materials and biological medicine, the guideline pointed out.
Insurance companies should develop products to cover manufacturers' assets, technologies, patent and production, the guideline added.
These institutions should upgrade credit ranking systems to “comprehensively evaluate entities based on technology, talent and market potential,” the guideline said. These efforts should go toward developing innovative small and medium firms in technology application and market expansion.
Manufacturers are also encouraged to work with financial institutions on financial leasing, especially in the heavy machinery sectors like aircraft, advanced railway transport equipment, shipbuilding and power equipment.
The government and financial institutions can also help ma-nufacturers with high growth potential to list on the domestic and overseas markets.