Liangjiang provides financial support to boost innovation

Liangjiang New Area has been supporting technology companies through various financial offerings, ensuring smooth capital turnover and boosting research and development.

Jing Bo, founder of Chongqing Mine Technology Co, a leading player in optoelectronic sensing technology, highlighted the impact of these initiatives. "With smooth capital turnover, we have the confidence to innovate and develop freely," he said.

Mine Tech secured a 9 million yuan ($1.23 million) Technology Growth Loan. "The low-interest loan is vital for our development and helps control costs, providing strong support for our production operations and R&D investment," Jing added.

Mine Tech is not the only company to benefit from these financial initiatives. Since 2019, Liangjiang has introduced a range of tech-focused financial offerings, including Technology Growth Loans, Technology Guarantee Loans, Technology Cross-Border Loans, and Knowledge Value Credit Loans. 

The Technology Growth Loan, for example, offers unsecured loans with amounts ranging from 5 million to 25 million yuan, which can be applied for consecutively for up to five years. The interest rate is based on the People's Bank of China's Loan Prime Rate (LPR), with a possible upward adjustment within a certain range. This offering features a collaborative review and risk-sharing mechanism, enhancing credit for companies and encouraging banks to lend more confidently.

A representative from the Liangjiang economic operation bureau said that authorities engage with local financial institutions, enhancing the sharing of credit information such as corporate income, taxation, social security, and credit ratings. This approach provides a credit solution to the challenges of expensive and difficult financing for enterprises.

Moreover, the area is exploring a risk-sharing mechanism, offering 50 percent risk compensation for principal losses on risk mitigation product loans, reducing banks' non-performing loan risks, and further incentivizing them to lend to high-tech enterprises.

Over the past few years, Liangjiang Venture Capital Co has collaborated with 24 financial institutions to serve 1,677 enterprises in the area. It has recommended loans exceeding 9.4 billion yuan, with 1,020 enterprises obtaining loans totaling over 4.9 billion yuan with interest rates as low as 2.5 percent.