China's first batch of 36 sci-tech innovation bonds, totaling 21 billion yuan (2.9 billion U.S. dollars), was launched on Friday to expand financing channels for companies engaging in integrated circuits, new materials, and intelligent computing.
The bonds involve 22 science and technology firms and 14 equity investment institutions, covering projects across 10 provincial-level regions, including Beijing, Shanghai, and Guangdong.
The rapid rollout, just two days after the People's Bank of China (PBOC) and the China Securities Regulatory Commission announced the policy, highlights the government's swift response to support sci-tech innovation, offering flexible bond terms and installment options for issuers.
The bonds were officially introduced at a launch and roadshow in Beijing, run by the National Association of Financial Market Institutional Investors (NAFMII) in partnership with the Beijing Financial Assets Exchange (BFE), marking their formal debut in the interbank bond market.
Under the new policy, issuers have the flexibility to structure bond terms creatively, with credit rating agencies encouraged to move away from traditional asset-based models in favor of tailored approaches. To enhance risk management, institutions will offer credit protection tools, guarantees, and other services, supporting both bond issuance and investment transactions.
"Sci-tech innovation bonds are financing tools designed specifically for the science and technology sector, with advantages of precision, flexible terms, and controllable costs. By providing more efficient, convenient, and cost-effective incremental funding, the issuance of these bonds is bound to attract more investment to support private enterprises in driving their sci-tech innovation, thereby fostering the development of new quality productive forces," said Cao Yuanyuan, deputy director of the financial markets department of the central bank.
Industry experts note that bond financing is more cost-effective than traditional bank loans, particularly for science and technology startups.
"As an equity investment institution, our previous financing channels were quite limited, relying mainly on private placements and equity financing. This time I believe the policy introduced by the People's Bank of China has actually opened up a new bond financing tool for investment, which is a very good thing for our industry," said Chen Wei, chairperson of Oriental Fortune Capital in Shenzhen.
"Given that the overall interest rate remains relatively low, being able to acquire funding at a lower cost than traditional bank loans is a very good source and replenishment of capital for science and technology companies," said Sun Jingyuan, head of corporate and institutional department at China Bond Rating.
Experts believe the issuance of long-term sci-tech innovation bonds will better align with the funding needs of the science and technology sector, complementing other financing channels such as bank loans and public market offerings.
China's first batch of 36 sci-tech innovation bonds launched
China's push toward a greener future is once again in the spotlight at this year's annual political "two sessions", as lawmakers are reviewing a draft ecological environment code, a significant step toward establishing a comprehensive legal framework for ecological protection.
The draft code was submitted on March 5 to the ongoing fourth session of the 14th National People's Congress (NPC), China's top legislature, for deliberation.
Once adopted, it will become China's second formal statutory code, after the Civil Code, which was adopted in 2020.
The rule of law has been continuously strengthened to support the country's green progress. China already has more than 30 laws related to environmental protection, along with over 100 sets of administrative regulations and more than 1,000 sets of local rules.
The latest legislative move comes amid China's historic gains in ecological conservation over the past decade or so. Championing green development, the country has recorded the world's fastest growth in forest resources and afforestation, led globally in renewable energy development, and achieved one of the fastest national reductions in energy intensity worldwide.
The 1,242-article draft has five chapters, covering areas including pollution control, ecological protection, and green and low-carbon development.
Scholars involved in drafting the legislation say the code goes beyond broad legal principles. It is also designed to address environmental issues that affect people's daily lives.
"Electric vehicles are becoming very common in China. My family has one. We all think it environment-friendly. But have you ever thought about this question: how do we deal with the first generation of EV batteries after they expire a few years later? The same goes for wind turbine blades and solar panels," said Ding Lin, assistant professor of the Renmin University of China.
China's environmental progress has drawn global attention in recent years, from improving air quality to expanding renewable energy. Yet amid geopolitical tensions and economic uncertainty, some observers have questioned whether the country will maintain the same pace of green transition.
"Last year during the COP30, even some friends who are very familiar with China asked me whether China will continue its green development path. I told them we have gradually worked out new policies. We have a very clear direction and goal. In a world full of uncertainties, we are providing the most certainty," said Wang Yi, an NPC deputy from east China's Zhejiang Province and professor of the Chinese Academy of Sciences.
In a country pursuing modernization, taking the time to codify environmental laws sends a clear message: economic growth and environmental protection are not a trade-off to be managed, but a commitment to be upheld. For China, a beautiful environment is not a luxury for the future, it is a right for the present, and a responsibility to the next generation.
"This code reflects China's vision of harmonious coexistence between humanity and nature. It shows how development and environmental protection can move forward together," said Lyu Zhongmei, vice chair of the NPC Environmental Protection and Resources Conservation Committee.
China will accelerate the green transition across the board and cut carbon dioxide emissions per unit of the GDP by a total of 17 percent in the 2026-2030 period, according to a draft outline of the 15th Five-Year Plan (2026-30) for national economic and social development submitted to the NPC for deliberation on March 5.
Chinese lawmakers review draft ecological environment code in major green legislative push
