Better Banking Channels Needed for Hi-Tech Firms: Bank OfficialChannels for commercial banks to finance high-tech businesses need to be improved in a bid to better promote their development, said a senior Chinese banker at the 4th APEC Technology Exhibition and Trade Fair being held in Suzhou.Shang Fulin, president of the Agricultural Bank of China (ABC), said that presently China's risk investment is still in the starting stage with limited capital sources, while commercial banks remain the major player in social investment. For commercial banks to better serve the needs of high-tech businesses, efforts should made to solve the contradiction between the prudent use of credit capital, which is the principle of banking management, and the high risk of investing in high-tech businesses, he said. "Under present management conditions, we need a risk compensating mechanism for financing high-tech businesses. To encourage more credit capital into high-tech sector, we need to solve the issue of compensating for the risks," he said. He suggested that the risk compensating mechanism should consider the following aspects: the mortgage of the debtors' future income, the innovation of credit guaranteeing models, the financing of risk investment companies by banks and the State's policy support. Shang said that his bank has selected some high-tech businesses for priority support, and over the past two years it has provided credit lines of over 100 billion yuan (about 12.2 billion US dollars) for high-tech businesses. It also plans to join hands with risk investment institutions to give more support to the development of high-tech industries. |
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