China’s tech firms at the front of the queue for loans amid policy tilt
People’s Bank of China asks government ministries and major banks to accelerate loans to tech companies
China’s central bank urged key government ministries and major banks to accelerate loans to tech companies, pushing for the implementation of its large-scale stimulus efforts that started in late September.
On Monday, the People’s Bank of China published an article on its official website which provided details of a meeting on Thursday aimed at fostering technological innovation and transformation.
The central bank urged financial institutions to “sign as many contracts as possible and invest as much as they can” in listed companies and projects.
“We need to tilt policy more towards private enterprises and small and medium-sized enterprises (SMEs),” it said.
“Banks should focus on improving the efficiency of loan approvals and disbursements, tailor loan products to better align with the financing needs of tech start-ups and SMEs undergoing technological upgrades, expand collateral options, and expedite the loan signing and disbursement process.”
Last week’s meeting had convened leaders from eight central government agencies, including the National Development and Reform Commission, the Ministry of Science and Technology and the Ministry of Finance, along with representatives from 21 national banking institutions, via video.
Four major banks, including the Bank of China and the Industrial and Commercial Bank of China, had also shared their lending experiences during the meeting.
