Ningbo ratchets up financial support for entrepreneurship, innovation

A view of Ningbo, East China's Zhejiang province. [Photo/WeChat account: nbfb0574]

Ningbo in East China's Zhejiang province recently unveiled a string of measures to improve financial support for entrepreneurship and innovation.

According to the guideline released on Jan 20, the city will optimize bank credit services and set up a risk compensation mechanism.

Financial institutions are encouraged to offer low-interest credits for start-ups by high-end talent.

Those that apply for loans for the first time are entitled to a subsidy offered by local authorities. The subsidy accounts for 1 percent of the loans spanning one year or more and is capped at 200,000 yuan ($30,76923).

On top of loans, multiple financing channels will be in place for scientific and technological startups. A credit risk compensation mechanism with a guaranteed fund of 100 million yuan will be set up soon.

Private equity funds will also be channeled to support enterprises set up by high-end talent. Fund companies will be given a one-time subsidy of up to 1 million yuan if their initial investment is no less than 2 million yuan. The subsidy amount accounts for 3 percent of their investment value.

Support will be provided for companies to raise capital through initial public offerings. In addition, various insurance products that mitigate the risks associated with starting a business in Ningbo will be made available.

Official statistics show that a total of 166,000 college students sought employment in Ningbo in 2020, an increase of 20.3 percent year-on-year.

Among them, the number of overseas students grew by 24.7 percent, while the number of students holding a master's or doctor's degree rose by more than 10,000 for the first time.