China’s central bank announced on Sunday plans to establish a substantial 500 billion yuan ($70 billion) re-lending initiative aimed at bolstering the nation’s science and technology sectors, according to a Reuters report.
This move underscores the country’s commitment to fostering innovation and supporting its burgeoning tech industry.
According to a statement released by the central bank, the programme will facilitate loans through 21 banks specifically targeting small and midsize technology enterprises.
These loans will come at a favorable interest rate of 1.75%, aimed at providing accessible funding to fuel innovation and growth within the sector.
The statement further outlined that the loans will have a duration of one year and can be extended twice, each time for up to a year.
This flexibility aims to accommodate the evolving needs of the technology companies and ensure sustained support for their endeavors.
The establishment of this significant re-lending programme comes as part of broader efforts by China’s policymakers to address economic challenges and stimulate growth.
With headwinds stemming from a property crisis and tensions with key trading partners, such measures are crucial to maintaining stability and confidence in the world’s second-largest economy.
In parallel developments, China’s central bank recently reshuffled its monetary policy committee, indicating a proactive approach to navigating the economic landscape and implementing effective strategies to bolster liquidity and confidence.
These initiatives reflect China’s proactive stance in addressing economic challenges and fostering sustainable growth in key sectors.
