Investing for upgrading: the emergence of financial system of science and technology in China’s Pearl River Delta

Abstract

This article discusses the recent reform policy in China on setting up new financial system for supporting science and technology innovation. Based on the financial sector development in the Pearl River Delta in China’s Guangdong Province, especially Guangzhou, one pilot city of Chinese Science and Technology Financial System Reform, the article analyses the problems in financial system and makes some suggestion on how to restructure the financial system to meet the financial need of local emerging high-tech industry and small and medium-sized enterprises (SMEs).