China’s National Financial Regulatory Administration has called on banks to increase their issuance of credit loans and medium- and long-term loans to technology enterprises. The move aims to support the development of the country’s technology sector, which is facing challenges such as slower economic growth and heightened geopolitical tensions, particularly with the United States. The initiative includes extending the term for working capital loans to technology firms for up to five years.
In a statement, the regulator emphasized that financial institutions should treat both foreign and domestic technology companies equally, ensuring that all market entities, regardless of ownership, have access to financial support. This approach highlights China’s push to foster an inclusive environment for technological innovation, especially during uncertain times.
To further strengthen the sector, the regulatory body has encouraged eligible commercial banks to establish financial asset investment companies. These companies would focus on making equity investments in technology firms located in regions with robust economic growth and significant research and development demand.
In addition to credit support, China is also urging banks, insurers, and asset managers to increase their investments in sci-tech innovation bonds. These efforts are part of a broader strategy to boost technological advancement and ensure that the country remains competitive on the global stage despite the current economic challenges and external pressures.
Source: Reuters