In a bid to bolster its technology sector, China is urging banks to amplify credit loans as well as medium and long-term loans to tech enterprises, as announced by the National Financial Regulatory Administration on Tuesday.
This initiative is part of China’s broader strategy to spur technological advancement amid economic slowdown worries and increasing geopolitical tensions with the U.S.
Under the new guidelines, banks can now extend working capital loans to technology companies for up to five years, the regulator stated.
Moreover, the regulator emphasized that financial institutions should offer equitable treatment to both foreign and domestic technology enterprises, underlining a non-discriminatory stance toward various market entities irrespective of ownership.
Further supporting this drive, the agency suggested that it would endorse selected commercial banks to establish financial asset investment companies. These entities are to focus on equity investments in technology firms within economically robust regions with high demands for research and development.
Additionally, the policy promotes increased investments from banks, insurers, and asset managers in science and technology innovation bonds.
