BOSC Offers CNY 10 Billion Fund to Support Science and Technology Innovation
8/18/2019
BY Youth Daily · Shanghai Youth
3363

"Economy is the body, and finance is the blood vessel. The two are symbiotic and co-prosperous." In the educational campaign themed "Remaining True to the Party’s Original Aspiration and Keeping Its Mission Firmly in Mind", Bank of Shanghai Co., Ltd. (BOSC), by keeping the original purpose and social responsibility of a financial institution in mind, has developed a series of effective measures that focus on "better serving the real economy, and supporting the development of micro, small and medium-sized enterprises”.

To fully support the construction of Shanghai Science and Technology Innovation Center, BOSC has already taken the lead in releasing the “Science and Technology Innovation (STI) Oriented Financial Service Plan”, providing support for scientifically & technologically innovative enterprises with a special line of credit up to CNY 10 billion, and setting up a financial expert pool for STI, aimed to create a "BOSC+" large platform for STI oriented financial services by linking up knowledge and capital with the institution. As of the end of 2018, the balance of loans from BOSC to technology companies had increased by 38% from the beginning of the year, significantly exceeding the average growth rate of general loans.

In recent years, when serving local small and micro businesses, BOSC has made full use of the location advantage of Shanghai which enjoys a favorable financial ecosystem, integrated resources from all sides, and actively cooperated & engaged with third parties, such as the government, parks, guarantee institutions, chambers of commerce and associations, to aggressively build the BOSC+ platform, and provide one-stop & systematic financial services that include account opening, settlement, investment & financing, and consulting for scientifically & technologically innovative enterprises. It is learned that BOSC has provided financial services for nearly half of the “specialized, proficient, unique and innovative” enterprises in Shanghai.

The reporter has learned from the interview that BOSC and Pudong New Area have unfolded bank-government cooperation, built a service platform for small and micro businesses, and focused on supporting the construction of a group of distinctive clusters that fulfill the function of innovation, such as Zhangjiang Science City and Lingang Science and Technology City, so as to give a boost to the small and micro businesses amidst local industrial structure upgrading. The bank has also established a resource matchmaking platform and created a customer information sharing mechanism with Shanghai Zhangjiang (Group) Co., Ltd., and explored consulting services as well as a package of comprehensive financial services for enterprises in the park from the aspects of policy consultation, scientific and technological R&D, achievement transformation, transaction matching, account opening, and payment settlement, etc.

Shanghai PATEO Group is an IoV company based in Shanghai. So far, it has established cooperation with about 30 vehicle manufacturers to research, develop and design intelligent onboard systems. In despite of its asset-light strategy, its corporate attributes have determined the need for high investment in R&D. Chairman Ken (Yilun) Ying said, “We have invested a total of CNY 1.2 billion or so in R&D, and will continue to invest 30% of our revenue in R&D every year in the future.” The large amount of R&D investment has brought huge financial pressure, but it’s often difficult to raise capital for a company that does not have enough fixed assets as collateral. This really stumped him. However, with the deepening of the financial supply-side reform, BOSC has optimized its business model with its credit granting process also greatly shortened, so as to address the financing difficulties encountered by the private small and medium-sized scientific & technological enterprises. After several field visits and rounds of communication, BOSC has successfully granted the CNY 1.5 billion special credit to Shanghai PATEO Group within one month through contract financing and accounts receivable financing.

The case of Shanghai PATEO Group is an epitome of the services that BOSC offers to small and medium-sized scientific & technological enterprises. In recent years, BOSC has actively aligned itself with the relevant policies – in not only Shanghai, but also the whole country – for the development of scientifically & technologically innovative enterprises, to explore STI oriented financial services from the aspects of product, service, channel and mechanism: incorporating STI oriented financial services into the strategic planning of the whole bank, tilting toward this field in terms of allocating human, financial, credit and other resources, formulating special risk tolerance policies for small and medium-sized scientific & technological enterprises, establishing technology sub-branches, and creating the “flagship store” and “test field” for STI oriented financial services. 

It is reported that in order to "better serve the real economy and support the development of micro, small and medium-sized enterprises", BOSC held a party committee meeting in July this year to carry out a thematic study on the development of inclusive finance business, with focus on the "online, platform, standardized and centralized" construction, while launching the “BOSC e-Chain” supply chain financial service platform, to achieve credit enhancement for small and micro businesses by integrating the transaction, logistics and capital information of the core enterprises and their upstream & downstream enterprises; and allow small and micro business better financial services by using big data technologies combined with service scenarios to realize batch and intelligent operations on line. 

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