China has given the go-ahead for 10 commercial banks, including Bank of China, the Bank of Beijing and the Bank of Shanghai to begin a pilot programme to directly invest in technology companies.
The pilot programme, aimed at supporting high-tech innovation, will be limited to five "demonstration zones' in the cities of Beijing, Shanghai, Tianjin, Wuhan and Xian, according to a document published by China's banking regulator on Thursday.
The purpose of the scheme is to provide financial support for the seeding, start-up and growth of scientific ventures, and to effectively increase the funds available for high-tech enterprises, said the document, drawn up by the China Banking Regulatory Commission, the Ministry of Technology and the central bank.
The banks are required to set up subsidiaries to carry out the investments, which can consist of equity or loan-linked investments, it said.