Funding has been a problem for private technology companies. By issuing high-yield bonds, this difficulty could be alleviated, suggested Han Na, a representative of the Shanghai Municipal People’s Congress during the ongoing Shanghai’s two sessions.

As the Chairman of Shanghai Ruima Information Technology Company, Han has a deep understanding of the difficulty of financing science and technology enterprises. In her view, the bottleneck restricting the development of science and technology enterprises, especially private ones, is the lack of resources, and the difficulty of financing has become an unavoidable problem.

Due to the current situations such as insufficient stability, few mortgage assets and the fuzzy future of the core technology, technology-based enterprises find it hard to to get money from banks.

According to the female manager, China now has the basic conditions to form a high-yield debt market, which can effectively broaden the financing channels for small and medium-sized enterprises and special technology-based companies. The issuance of high-yield bonds can improve the market-oriented risk decomposition mechanism for SMEs.

In addition, she also proposed the establishment of a credit guarantee system, with appropriate guarantee institutions acting as third parties to provide guarantees for banks to issue loans to enterprises. Moreover, more business varieties should be developed to diversify the credit guarantee system.