Optics Valley issues targeted sci-tech finance policies

Paths to prosperity: The well-lit streets of Optics Valley of China. [Photo/Optics Valley of China]

The East Lake High-tech Development Zone, also known as Optics Valley of China, or OVC, is on a roll and it's expected that things will only get better.

The zone – located in Wuhan city, capital of Central China's Hubei province – released its 10 new sci-tech finance policies on Jan 1, as well as a sci-tech finance business and service standards guide for the banking and insurance industries.

That's in a bid to further optimize the valley's sci-tech finance policy mechanism and create a sounder business environment.

The move is expected to inject new vitality into the construction of the national sci-tech finance center in Wuhan New City.

On the same day, the valley's administration also issued a financial industry development master plan and a three-year action plan for 2023-2025 financial work. The master plan states that in 2025, the OVC is expected to be home to 10 licensed financial institutions and 100 foreign-listed enterprises.

Headquarters of financial institutions based in the OVC will be given a grant of 2 percent of their paid-in capital, up to a maximum of 200 million yuan ($29.58 million). The branches of banks, securities companies or insurance firms moving into the valley will also enjoy a one-time bonus of 500,000 yuan and 60 percent of their office's rent will be subsidized by the government.

A pilot sci-tech insurance product library will be set up to encourage insurance companies to develop new insurance types in innovative research, production and operation, marketing and technology transfers.

Sci-tech enterprises willing to buy products in the library will be compensated to the tune of 80 percent of their premiums.

Last year, the OVC registered 19,000 new enterprises, 70 new little giant companies, 559 newly recognized gazelle firms and seven newly listed corporations.

The total number of local venture capital companies reached 193. They manage more than 140 billion yuan in capital, accounting for over 50 percent of Hubei province's total.