China's PBOC Unveils Bond Market 'Technology Board': A New Funding Channel for Top Tech Investors

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Key Points

The People’s Bank of China (Rénmín Yínháng) is launching a new Bond Market ‘Technology Board’ (Zhàiquàn Shìchǎng ‘Kējì Bǎn’) to boost funding for tech equity investment.
This board aims to provide easier and more cost-effective access to bond markets for equity investment institutions, addressing challenges like light assets and long investment cycles.
The initiative primarily supports top-ranked and experienced equity investment institutions, focusing on those investing early in small, high-potential startups and hard technology.
In addition to the board, PBOC is establishing a risk-sharing mechanism and providing low-cost relending funds for technology innovation bonds to further support tech investments.

Big news for anyone tracking China’s tech and investment landscape: the People’s Bank of China (Rénmín Yínháng) is gearing up to launch a specialized Bond Market ‘Technology Board’ (Zhàiquàn Shìchǎng ‘Kējì Bǎn’), aimed squarely at bolstering top-tier equity investment in the innovative tech sector.

What Exactly is this Bond Market ‘Technology Board’?

So, what’s the scoop on this new Bond Market ‘Technology Board’?

Zhu Hexin (Zhū Hèxīn), who serves as the Deputy Governor of the People’s Bank of China (Rénmín Yínháng) and also as the Administrator of the State Administration of Foreign Exchange (Guójiā Wàihuì Jú), shared the details at a State Council Information Office press conference on May 22, 2025.

This isn’t just another financial instrument; it’s a targeted initiative designed to streamline financing for innovation.

Key Features of the Bond Market ‘Technology Board’
Feature	Benefit
Flexible Staggered Issuances	Offers issuers more strategic timing for bond releases.
Simplified Information Disclosure	Reduces red tape and administrative burden.
Reduced/Exempted Fees	Lowers the cost of bond issuance and trading.

Key features of the Bond Market ‘Technology Board’ (Zhàiquàn Shìchǎng ‘Kējì Bǎn’) include:

Support for issuers to flexibly stagger their bond issuances, offering more strategic timing.
Simplified information disclosure requirements, cutting down on red tape.
Potential for reduced or even exempted fees related to bond issuance and trading, lowering costs.

Essentially, it means easier and more cost-effective access to bond markets for crucial players in the tech investment ecosystem.

Why the Spotlight on Equity Investment Institutions for the ‘Technology Board’?

Here’s a critical detail: Zhu Hexin explicitly stated that this Bond Market ‘Technology Board’ is primarily designed to support equity investment institutions.

But why this specific focus?

According to Zhu, these institutions are the vanguard of tech investment.

Focus Areas for Supported Equity Investment Institutions

Investing Early
Backing Small, High-Potential Startups
Channeling Funds into Hard Technology

They are the ones often:

Investing early in groundbreaking ventures.
Backing small, high-potential startups.
Channeling funds into hard technology – the kind of deep tech that drives significant advancements.

This initiative is about fueling the foundational R&D and innovation pipeline.

The Unique Hurdles Faced by Tech-Focused Equity Investors

Investing in cutting-edge technology carries a distinct set of financial challenges.

Equity investment firms, especially those deeply involved in the tech sector, frequently navigate issues such as:

Light assets: Unlike traditional industries, their value isn’t always tied to tangible, physical collateral.
Long investment cycles: Revolutionary tech takes considerable time to develop, commercialize, and generate returns.

Zhu pointed out that relying solely on conventional bond issuance can lead to significant problems for these institutions, including:

Challenges for Tech-Focused Equity Investors Using Conventional Bonds
Challenge	Impact
Short Financing Terms	Clashes with long-term investment strategies required for R&D.
High Financing Costs	Can erode the financial viability of ambitious tech projects.

Short financing terms that clash with their long-term investment strategies.

High financing costs that can erode the viability of ambitious tech projects.

The Bond Market ‘Technology Board’ aims to directly address these pain points, providing a more suitable financing avenue.

Beyond Bonds: Additional PBOC Support Mechanisms for Tech Innovation

The support doesn’t stop at easier bond issuance.

The People’s Bank of China (Rénmín Yínháng) is layering in further incentives.

Additional PBOC Support for Tech Innovation Bonds

Risk-Sharing Mechanism for Technology Innovation Bonds
Provision of Low-Cost Relending Funds by the Central Bank

Zhu Hexin elaborated, “we have also established a risk-sharing mechanism for technology innovation bonds, with the central bank providing low-cost relending funds.”

This is a significant development, offering a two-pronged boost:

Risk Mitigation: A mechanism to help distribute and manage the inherent risks of investing in novel and sometimes unproven technologies.
Access to Cheaper Capital: The provision of low-cost relending funds directly from the central bank can make a substantial difference in the financial feasibility of tech investments.

This combined approach signals a robust commitment to de-risking and incentivizing investment in China’s tech innovation through this new board.

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Who Leads the Pack? Priority Access to the ‘Technology Board’

So, who gets priority when it comes to leveraging this new Bond Market ‘Technology Board’ (Zhàiquàn Shìchǎng ‘Kējì Bǎn’)?

The message from Zhu Hexin was unambiguous.

The platform will primarily support top-ranked and experienced equity investment institutions in issuing bonds.

This indicates a strategic focus on channeling resources towards entities with a proven track record and the expertise to effectively allocate capital in the dynamic and demanding tech investment landscape.

Fueling China’s Tech Future: The Impact of the Bond Market ‘Technology Board’

The introduction of the Bond Market ‘Technology Board’ by the People’s Bank of China (Rénmín Yínháng) represents a clear strategic move to fortify China’s technological advancement from its financial foundations.

By specifically tailoring support for established equity investment institutions that champion early-stage development and hard tech, China is aiming to ensure its most innovative sectors receive the sustained financial backing they need to thrive.

This is a pivotal development that investors, founders, tech professionals, and marketers worldwide will be watching with keen interest, as it has the potential to reshape how deep technology is funded and accelerated, making the new Bond Market ‘Technology Board’ a crucial innovation in China’s financial markets.