The bank is about to be approved to open a new "business"

At the end of 2016, as one of the ten pilot banks piloted in the “Guiding Opinions on Supporting Banking Financial Institutions to Intensify Innovation and Launching Science and Technology Enterprises' Investment and Loan Linkage Pilots”, there will be a number of “investment and loan linkage” cases. At present, the pilot areas and pilot banks have submitted the pilot implementation plan as required. The State Council will approve relevant banks to establish specialized investment companies and conduct equity investment business in accordance with relevant laws and regulations.

Investment and loan linkage pilot accelerates
In March of this year, the Chairman of the China Banking Regulatory Commission pointed out that in view of the fact that many high-tech innovative enterprises in China have no capital at the initial stage and bank loans have a higher risk, banks can also make a difference. In April this year, the China Banking Regulatory Commission and other joint advisory opinions on the joint venture of science and technology enterprises.
Establish pilot areas: Beijing Zhongguancun National Independent Innovation Demonstration Zone, Wuhan Donghu National Independent Innovation Demonstration Zone, Shanghai Zhangjiang National Independent Innovation Demonstration Zone, Tianjin Binhai National Independent Innovation Demonstration Zone and Xi'an National Independent Innovation Demonstration Zone;
Pilot Banks: China Development Bank, Bank of China, Evergrowing Bank, Bank of Beijing, Tianjin Bank, Shanghai Bank, Hankou Bank, Xi'an Bank, Shanghai Huarui Bank, Pudong Silicon Valley Bank.

Banks start the development of equity investment
Banks officially step into the equity market and create new growth points
Despite the restrictions of commercial banking law, bank funds have begun to gradually enter the field of equity investment. Some banks have carried out through the establishment of holding subsidiaries and the signing of cross-sector cooperation agreements. For example, Bank of China, Bank of Communications, etc. established a subsidiary with equity investment qualifications in China, such as BOC International, Bank of Communications International, etc.; Nanjing Bank through the holding of Sun Company Xinyi Equity Investment Management Company to carry out equity investment business. In addition, the industry fund, the two beneficial rights, PPP projects and other methods are also the focus of current banking development. The launch of the pilot project of investment and loan will, on the one hand, give the bank a formal equity investment license and sunlight the investment behavior. On the other hand, it provides a higher-yielding investment channel for banks in asset shortages, enriching the bank's income sources.
Transform from LP to GP to improve risk investment ability
In the past, banks have participated in equity investment projects mainly in the form of LPs, and obtained fixed income. In fact, they still use the thinking of debt investment as a “class loan” project. After the pilot of the investment and loan linkage, the bank will be promoted as a GP to participate in the day-to-day management of investment objects, and will have more flexibility in pre-investment analysis, post-investment management, and investment exit. Compared with short-term debt investment, the equity investment period is long, and it also tests the risk pricing and project management capabilities of investment institutions. This will promote innovation in the banking system's operating and incentive systems.

Why choose a science and technology company?
Support the development of science and technology enterprises and promote the economic strategy of "double innovation"
Mass entrepreneurship and innovation are important parts of the government's work report. With the rapid development of the Internet, innovation and entrepreneurship have received more and more attention. However, small and medium-sized micro-enterprises that have sprung up in the showers often lack the collateral, collateral and other banks to provide loans for review, and financing is the biggest worry. The Ministry of Science and Technology also participated in the pilot, demonstrating the understanding of the development stage of science and technology enterprises and the support of science and technology enterprises from the national level. Therefore, the pilot banks' equity investment in non-listed science and technology enterprises in the seeding stage, the initial stage, and the growth stage can effectively alleviate the shortage of funds in their development stage and promote the development of the “double creation” economic strategy.
Selected national independent innovation demonstration zones to support innovation-driven development strategies
The first batch of five pilot areas selected were national leading regions for technological innovation, and there were national independent innovation demonstration zones, which are also areas with good financial system construction. In the choice of pilot banks, the headquarters of local banks such as Bank of Beijing, Tianjin Bank, Shanghai Bank, Hankou Bank, and Xi'an Bank are all in the above-mentioned independent innovation demonstration zones. National banks such as CDB, Bank of China and Evergrowing Bank are piloting. There are branches in the region. These banks are not only familiar with the local science and technology enterprises, but also have better coordination with the local government. They can well implement local conditions and promote the good development of investment and loan linkages. Pilot and promotion across the country.

How to do a good job in investment and loan linkage?
Established an investment subsidiary and independently operated the investment business.
The pilot bank may set up an investment function subsidiary, which shall carry out equity investment for investment and loan linkage; it may also set up a technology finance franchise agency to specialize in credit investment combined with equity investment of science and technology enterprises; or newly set or transform some points (support) ), as a professional or special branch (branch) of financial services for science and technology enterprises, to carry out credit and related financial services.
Strengthen risk firewalls and inhibit risk transmission
A bank subsidiary can only invest equity with its own funds, and the investment amount of a single enterprise cannot exceed 10% of its own funds. This measure isolates the equity investment risk of the subsidiary from the credit risk of the parent company and avoids the risk. Conducted to the group.
Equity income increases enthusiasm, quality standards promote business development
Bank subsidiaries obtain income through equity investment in Science and Technology Enterprises, and their investment losses will be balanced by the income of other investment projects. Therefore, high-quality project screening is the main link to ensure income. Investment subsidiaries can increase employee enthusiasm by investing in high-quality projects to obtain higher returns, and further promote business development.
Heshan Stone "Silicon Valley Bank", learn from experience to promote development
The US Silicon Valley Bank has been working closely with venture capital institutions for a long time. Most of the time, it will choose to invest in the same time as the venture capital. It has formed its own positioning system in the selection of target customers, keeping the risks low. In addition, the equity is managed by the Silicon Valley equity investment under the group to realize the separate management of equity claims. Drawing on the successful experience of Silicon Valley Bank of the United States, it is expected that the future investment and loan linkage business will be steadily advanced in the short term and will be widely promoted in the long run.

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