(Yicai) Aug. 15 -- China’s southernmost province of Hainan has introduced a package of policies, including subsidized loans and generous cash rewards, to strengthen its local biomedicine sector and position itself as a national innovation hub.

The island province recently announced 22 measures, including subsidies covering half the interest rate on loans for mergers and restructuring, as well as incentives of up to CNY30 million (USD4.2 million), Yicai learned. The policy package will remain in effect for three years starting Sept. 13.

The incentives aim to attract firms from Hainan and beyond to merge with local medical companies and pursue listings both domestically and overseas. Interest subsidies are valid for two years, capped at CNY5 million (USD696,130) per project.

Additional rewards ranging from CNY400,000 to CNY10 million (USD55,710 to USD1.4 million) will be granted to support product development, including preclinical research, clinical trials, and commercialization. Companies winning tenders in China’s centralized procurement program for medical instruments will be eligible for incentives of up to CNY3 million or 3 percent of sales.

To upgrade its biopharmaceutical industry chain, Hainan will support flagship projects in innovative drugs, synthetic biology, advanced medical devices, nuclear medicine, and breakthroughs in traditional Chinese medicine. Each year, three key projects will be selected to receive up to CNY30 million in support.

The province also aims to nurture emerging sub-sectors such as bio-manufacturing, medical cosmetology, medical nutrition, and digital therapeutics.

In this regard, Hainan will promote the transformation and application of biotechnological research in commercially valuable areas, including new vaccines, antibody drugs, cell and gene therapies, marine biological products, synthetic biology, and aerospace medicine.

Editor: Emmi Laine