On August 10, a financial news outlet reported that the General Office of the Hainan Provincial People's Government recently issued the "Several Measures on Further Deepening Investment and Financing Reform in Hainan."

Among the key points, the document emphasizes optimizing fund combinations and advancing a "grant-to-equity" mechanism in the technology sector. It calls for coordinating the deployment pace of government funds, policy-based financial instruments, and commercial bank loans.

To this end, relevant authorities will encourage policy banks and commercial banks to engage in the early-stage planning of major projects. The measures also propose setting a reasonable ratio among government funds, credit funds, and self-owned funds. A full-cycle capital circulation system will be explored, structured as "funds for efficiency, investments for funds, construction for credit, and operations for securitization."

For projects with strong returns and broad financing channels, the government will reduce or withhold the allocation of public funds. Additionally, the document outlines a guideline for implementing a "grant-to-equity" approach in the science and technology sector using fiscal funds. This policy will expand the scope of the "grant-to-equity" model, allowing fiscal funds to be invested upfront in commercialization projects in fields such as biomedicine and deep-sea technology.

Once the enterprises mature, these funds will be converted into equity, enabling shared risks and mutual benefits.