A view of Fullsing Town Internet Innovation Park, featuring digital trade, intelligent Internet of Things, fintech and global innovation, in Hainan Free Trade Port. (PHOTO: XINHUA) 

By WEI Yichen, WU Chunxin, CHEN Rujian & CHEN Chunyou

Promoting the virtuous cycle of science and technology, industry, and finance, is an important means to achieve sci-tech self-reliance and strength at higher levels, and it was also the concern of deputies at the recently concluded Two Sessions.

This virtuous cycle, in essence, means the timely commercialization of research results by reinforcing the deep integration of industries, academic research and finance, said Song Dexiong, director-general of Jiangxi Provincial Department of Science and Technology.

During this process, finance plays an active role in supporting sci-tech innovation and industrial revitalization, and it can also enjoy development from the real economy, said Song, stressing that the first step to promote this cycle is to promote the commercialization of research results.

The process of realizing this commercialization is coupled with high investment and risks. To help spread the overall risks, finance can play a role, said Yang Shuming, professor of The Institute of State Governance, at the Huazhong University of Science and Technology.

Over the past two years, China has advanced the application of e-CNY, and developed new business models, such as digital financial inclusion, supply chain finance and green finance. Yang Weikun, vice mayor of the Baoding Municipal Government, said this not only boosts enterprises' development, but also promotes financial digital technology innovation, as well accelerating the digital transformation and upgrading of the Chinese financial industry.

Financing has always been a major difficulty faced by technology enterprises. To solve the financing problems of small and medium-sized enterprises, many regions have established special loans and increased targeted support.

Wang Yeqiang, vice president of the CCB Trust, said that helping make breakthroughs in core technologies and helping enterprises grow stronger, can bring sustainable rewards for researchers and social investors. This is a win-win situation.

The fact is that, to avoid risks, social funds often flow to research results with high certainty, rather than research in the preclinical trial stage, said Sun Taolei, dean of the School of Chemistry, Chemical Engineering and Life Sciences, Wuhan University of Technology. He added that if research is highly dependent on external investment, it is likely to face the risk of capital chain rupture anytime before the results enter the market.

Sun suggested setting up a transformation fund for the original technology enterprises in the incubation stage, to eliminate their financial worries and boost industrialized development.

It is necessary to build an ecosystem in which scientists and enterprises dare to act and take risks, social capital likes to invest, and governments are willing to support, added Yang, noting that this new model will help form a community of interests between the capital market and technological innovation, to cope with various risks and challenges.