On Sept. 16 Qiushi published a signed article by PBOC Governor Pan Gongsheng saying credit growth alone cannot measure the strength of financial support for the real economy. He said technological innovation is complex and better served by a diversified financing structure: tech firms typically pass seed, start-up, growth and mature stages with materially different risk profiles and funding needs, requiring a range of markets and financial ecosystems. Early-stage firms rely mainly on private equ

On Sept. 16 Qiushi published a signed article by PBOC Governor Pan Gongsheng saying credit growth alone cannot measure the strength of financial support for the real economy. He said technological innovation is complex and better served by a diversified financing structure: tech firms typically pass seed, start-up, growth and mature stages with materially different risk profiles and funding needs, requiring a range of markets and financial ecosystems. Early-stage firms rely mainly on private equity and venture capital; in later stages they can finance via bank loans, bonds and equity. Financial markets have an advantage in funding frontier, high-risk/high-return innovation and provide a healthy substitution and diversion from bank lending, and Pan said this structural change will become the norm.