Insurance boosts tech with fund influx.

June 4, 2024
1 min read

TLDR:

– Insurance funds are being used to boost technology industries in China, providing long-term and patient capital throughout the full life cycle of companies.

– Companies like China Life Asset Management Co Ltd are using secondary funds to invest in emerging industries like integrated circuits, benefiting companies like UNISOC and Advanced Micro-Fabrication Equipment Inc China.

The article highlights the importance of insurance capital in meeting the financing needs of technology-intensive industries like integrated circuits. Companies like China Life Asset Management Co Ltd (CLAMC) are using innovative methods like secondary funds to invest in emerging industries, such as integrated circuits. This approach allows for capital liquidity and a more precise investment strategy throughout the entire life cycle of technology companies.

Furthermore, the article discusses how insurance capital can support the development of new quality productive forces, such as green development-related sectors and advanced manufacturing. By investing in China’s new economic growth engines, insurance firms can not only generate investment returns but also contribute to the country’s strategic emerging industries.

The use of insurance policies specially designed for technology-savvy companies, such as biopharmaceutical enterprises or aerospace companies, further underscores the role of insurance companies in supporting technology startups. By providing compensation mechanisms for R&D expenses, unexpected suspension of R&D activities, and intellectual property rights protection, insurance companies can effectively disperse risks in major sectors or projects.

Overall, the article emphasizes the critical role of insurance funds in boosting the development of technology industries in China and highlights the importance of long-term and patient capital in supporting innovation and growth.

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