China to launch "sci-tech board" in bond market

China will launch a "sci-tech board" in its bond market to promote the issuance of sci-tech innovation bonds by financial institutions, tech firms and private equity investment institutions, the country's central bank governor said Thursday.

At a press conference on the sidelines of the third session of the 14th National People's Congress, Pan Gongsheng, governor of the People's Bank of China (PBOC), highlighted the central bank's efforts in recent years, in collaboration with relevant departments, to enhance financial support for scientific and technological innovation through a comprehensive use of equity, debt, insurance, and other financial instruments.

"Recently, to further enhance financial support for scientific and technological innovation, the PBOC, together with the China Securities Regulatory Commission, the Ministry of Science and Technology and other departments, will introduce a 'sci-tech board' in the bond market. We will support financial institutions, tech firms and private equity investment institutions in issuing science and technology innovation bonds and expanding the product system," said Pan.

"We will optimize the re-loaning policy for technological innovation and transformation. This policy is already in place, and we plan to further refine it and expand the scale of re-loaning from the current 500 billion yuan (about 68.9 billion U.S. dollars) to between 800 billion and one trillion yuan (about 110 to 137 billion U.S. dollars) to better meet enterprises' financing needs. We will lower the interest rates for re-loaning, expand the scope of re-loaning support, and significantly enhance policy coverage. Meanwhile, we will maintain the level of loan interest subsidies so as to really bring down the financing costs for enterprises. We will optimize the re-loaning process as well," he said.

Pan stated that the next step will involve strengthening collaboration with relevant departments to enhance the policy framework for financial support of technological innovation, fostering a financial market ecosystem that nurtures innovation, and continuously improving the effectiveness, scale, and level of financial support in this sector.

"We welcome international investors to invest in Chinese science and technology enterprises, and oppose turning market-based investment into a tool or use it politically, and we are against the imposition of unreasonable investment barriers," said Pan.

China to launch "sci-tech board" in bond market

South Africa's National Disaster Management Centre declared a national disaster on Sunday as heavy rains and flooding continued to batter northern parts of the country.

According to local media reports, continuous rainfall since late December has caused severe flooding in Limpopo Province, where at least 17 people, including two children, have died. Minister of Cooperative Governance and Traditional Affairs Velenkosini Hlabisa said in a statement on Sunday that 20 people had been killed in flood-related incidents in Mpumalanga Province.

More than 1,600 homes and 31 schools have been affected in Limpopo, while over 1,000 homes in Mpumalanga have suffered varying degrees of damage. The flooding has also forced the partial closure of Kruger National Park, one of Africa's largest wildlife reserves, with more than 600 visitors evacuated after rising waters inundated access roads and campsites.

The South African National Defence Force has deployed two helicopters to assist with rescue operations and evacuate residents stranded in hard-hit areas.

S Africa declares national disaster as flooding batters northern region