The Shanghai Financial Regulatory Bureau has issued new guidelines to improve the quality and efficiency of technology finance across the city’s banking and insurance sectors. The framework places strong emphasis on deploying advanced digital technologies—including artificial intelligence, blockchain and quantum computing—throughout the financial services chain.

A central element of the guidelines is the integration of frontier technologies into financial institutions’ core operations. The regulator encourages qualified banks and insurers to build enterprise-level AI platforms and apply big data, blockchain, the Internet of Things and quantum computing to product development, business decision-making and risk management. The goal is to raise the overall level of digitalization and intelligent operations in fintech services.

The guidelines also call for a fundamental change in how technology companies are evaluated. Institutions are encouraged to move away from assessments focused primarily on financial indicators and adopt models centered on scientific and technological innovation capabilities. Using dedicated technology-finance databases and the Shanghai Science and Technology Points system, banks and insurers are expected to create specialized evaluation frameworks that accurately profile technology talent and technology-based enterprises. These frameworks are intended to support the faster development of tailored financial products.

The regulator highlighted the need for responsible innovation. Financial institutions must strengthen the safe use of AI, improve data and network security, manage risks involving data, models and algorithms, and protect consumer privacy.

Credit, Insurance and Ecosystem Support for Technology Firms

The opinion establishes a multi-layered service structure covering both the technology lifecycle and the corporate lifecycle. In lending, banks are directed to expand differentiated support for research and development and the commercialization of research results. They are also asked to increase first-time lending, unsecured lending and medium- to long-term loans for small and hard-tech enterprises, while raising the proportion of loan renewals. Working-capital loans for companies with long cash-recovery cycles may be extended for up to five years.

For insurance, the guidelines call for products covering the full innovation chain, including research and development liability insurance, pilot-production insurance, intellectual property insurance and coverage for losses incurred during the commercialization of research results. Insurers are expected to develop standardized, low-cost packages for technology-driven small and medium-sized enterprises. They are also encouraged to participate in the long-term investment pilot and direct capital toward venture, equity and buyout funds focused on strategic emerging industries and hard tech.

The framework institutionalizes a “partner banking and insurance mechanism” that brings together government bodies, industry associations, science parks and investment funds. The coordinated ecosystem is intended to provide relay-style equity, credit, bond and guarantee services. The guidelines also advance a comprehensive pilot for intellectual property finance by expanding pledge financing and exploring IP-backed securities and service trusts.

The bureau placed additional emphasis on risk containment. Institutions must establish independent credit-evaluation systems for technology enterprises, use AI and large models to identify risks and conduct post-loan monitoring, and incorporate risk management throughout the entire business process. The measures form part of Shanghai’s effort to strengthen its role as the Yangtze River Delta international science and technology innovation center. Implementation will therefore center on how institutions apply the proposed technology-evaluation frameworks, financial products, ecosystem partnerships and risk controls.

Source: Metaverse Post