academic calls for qianhai tech bank-m6米乐app

the president of the research institute of tsinghua university in shenzhen has called for a technology bank to be established in the qianhai economic zone to offer much-needed financial help to start-up tech companies.

"now is a vital time for shenzhen to set up a technology bank," ji shishan was quoted by shenzhen economic daily as saying.

shenzhen municipal government submitted an application two years ago to the china banking regulatory commission for the establishment of a technology bank in qianhai. although the proposal has been widely applauded, no green light has so far been given.

"if shenzhen cannot become a pilot city, there won't be any other regions in the country that have more mature conditions than shenzhen," ji said.

the call for the establishment of china's silicon valley bank has been around for years, but a real technology bank is yet to emerge.

the all-china federation of industry & commerce proposed in 2007 that the zhongguancun area in beijing, zhangjiang in shanghai and the high-tech industrial park in shenzhen be chosen to pilot the establishment of technology banks. the federation argued that it was extremely hard for small and medium-sized tech companies to obtain loans from banks before achieving commercial success. difficulties in appraising the cash value of technological achievements and the high risks in tech companies' development proved to be obstacles for banks' support, the federation said.

silicon valley bank-style technology banks that fund start-ups can get stock rights in return and thereby share the potential high returns of tech companies. such banks also can cooperate with venture capital funds to mitigate their risks.

ma weihua, former chairman of china merchants bank, said earlier this year that silicon valley bank has played a crucial role in the development of silicon valley in the united states. since its inception in 1983, the bank has provided financial services to more than 30,000 high-tech, innovative companies around the world. world-famous companies such as twitter and cisco used to be its clients.

more than 60 percent of patented inventions, more than 70 percent of technological innovations and more than 80 percent of new products in china were made or developed by micro- or small companies, ma said. because these companies are usually small in scale, weak in strength and insufficient in capital, however, they often are shut out when applying for loans. some 95 percent of the high-tech companies in shenzhen have cited capital shortage as a bottleneck in their development.

(source:shenzhen daily)