2025 Science-Tech Fiscal Spending Reaches RMB 1.2062 Trillion; Direct Financing Share Hits 46.9%

In 2025, fiscal spending on science and technology nationwide reached RMB 1.2062 trillion, and total R&D expenditure amounted to RMB 3.9262 trillion, ranking second globally. Aggregate social financing increment for the year was RMB 35.6 trillion, of which direct financing totaled RMB 16.7 trillion, with its share rising to 46.9%. RMB loan balances grew 7.3% year on year, and the multi-tiered capital market continued to expand, providing financing support for the real economy.

In the course of China's financial reform, the People's Bank of China was separated and made independent in 1978, and specialized banks were successively restored. In 1990, the Shanghai Stock Exchange was established, launching the direct financing market. In 1994, three policy banks were set up, separating policy finance from commercial finance. In 1993, the Decision on Financial System Reform laid the framework for a modern financial system. In 2023, reforms to the financial regulatory system were implemented, structural monetary policy tools came into regular use, and the relevant legal framework was gradually improved.

Regarding international financial regulatory experience, the United States enacted the Banking Act of 1933 after the Great Depression, separating commercial and investment banking and establishing a deposit insurance system. After the 2008 subprime crisis, it passed the Dodd-Frank Act, which restricted banks' proprietary trading and created the Financial Stability Oversight Council to coordinate systemic risk. In the 1980s, Japan promoted financial liberalization but relaxed oversight, weakening risk discipline and fueling stock and property bubbles. The UK's Financial Conduct Authority introduced the concept of 'regulating for growth', emphasizing that moderate risk is necessary for innovation.

Currently, China's financial regulation has room for improvement, including the alignment of policy timing with market conditions, the uniformity of regulatory standards, and the efficiency of cross-agency coordination. The 2025 national financial regulatory work report explicitly called for advancing digital transformation in intelligent monitoring, precise enforcement, and coordinated resolution. Some regions apply traditional credit standards to technological innovation and green finance innovations, while a few areas have lax oversight of local financial institutions. These issues require adjusting the regulatory framework to accommodate changes in the industrial structure.