City financial firms boost high-tech investment to back innovation

Financial firms are increasing investment and strengthening support for local startups to boost innovation and build Shanghai into a global digital hub, Shanghai Daily has learned.

Shanghai has restructured the city-level technology investment entity SVTC Group in the Pudong New Area with a fund of 120 billion yuan (US$18.8 billion). The group has invested in 360 firms including 51 listed on the Shanghai STAR Market.

Minhang District, home to strategic industries like integrated circuitry, advanced manufacturing and health care, will launch new investment support policies with 20 lines covering 10 categories.

It will encourage finance firms, including banks, securities and private equity/venture capital firms, to invest in small and medium-sized enterprises and support them to the IPO stage, said Li Jun, director of Minhang District Finance Bureau.

The district has set up government-backed investment funds with a total volume of over 6.2 billion yuan since 2010, triggering total investment of 127 billion yuan, local officials said.

Minhang aims to become an investment and finance center in the Yangtze River Delta region, Li added.

With government strategies and finance industry support, high-tech investment accounted for 30 percent of the top 100 investment cases in China in 2021, compared with 10 percent several years ago, said Wang Yunfan, chief executive of Morning Whistle, an investment consulting firm.

Shanghai Rural Commercial Bank (SRCB) set up a special team for high tech investment and loan services in July to help local startups to grow, said Liang Qing, SRCB's investment department general manager.