China's banking and insurance sectors are poised to accelerate the development of financial service systems that are well-aligned with the needs of fostering technological innovation over the next five years, according to a government plan issued on Tuesday.

China will expand the provision of credit loans and medium-to-long-term loans to tech companies, with flexible pricing and repayment arrangements, as outlined in the plan jointly issued by the National Financial Regulatory Administration, the Ministry of Science and Technology, and the National Development and Reform Commission.

For tech enterprises that typically experience longer cash flow cycles, banks will be able to extend the loan tenure, up to a maximum of five years, the plan said.

The country's banking and financial institutions are set to increase the weightage of tech finance-related indicators in their internal performance evaluation systems, while also raising the tolerance for non-performing loans to tech enterprises as appropriate.

The plan emphasized the need to provide equal financial services to both private and foreign-invested tech enterprises and research and development centers.

Efforts will be made to extend the pilot program for equity investments by financial asset management companies to regions with strong economic prowess and a significant presence of tech enterprises, and support qualified commercial banks to establish financial asset investment companies, according to the plan.

The country also encourages banking institutions to provide underwriting services for eligible science and technology-oriented firms to issue tech innovation bonds and asset-backed securities, among others, the plan said.