Liu Haitao, chairman of World Sensing Net Group, explains IoT finance during an interview on Aug 25. [Photo provided to China Daily]

"IoT finance will make it much easier for small and medium-sized companies to raise funds, thereby promoting the development of the real economy," he added.

Wuxi, the cradle of China's IoT industry, has attached great importance to industrial development. The city boasted around 2,000 IoT businesses by the end of 2016, with total revenues of more than 204.5 billion yuan ($ 30.69 billion).

At the signing ceremony, Feng Xiaoshun, a top official in Wuxi New District, expressed his best wishes, saying that the government would provide better services and greater support to boost the development of IoT finance.