According to a recent report, China is about to open its first tech insurance company that will be equivalent of the “Silicon Valley Bank” by 2020. According to Wu Lebin, chairman of Chinese Academy of Sciences Holdings Co Ltd, the proposal to set up a tech insurance company has got great response from China Insurance Regulatory Commission, the nation’s insurance watchdog, following the submission of application materials some time back.
Almost 5 firms have sponsored the set up of the insurer. Most of them are enterprises linked to the China Academy of Sciences, the national institution conducting fundamental and applied research, Wu said expressed. Registered capital reached over 1 billion yuan ($145.2 million) Wu said.
“We see great hopes to lead the country’s first tech insurance company, serving high-tech companies of all scales and in various stages, from project approval to product selling”.
The academy has signed a contract with the Shanghai municipal government to establish a bank which would target small and medium-sized tech firms who wish for loans to perk up their businesses, Wu concluded.