China’s central bank is unveiling a significant initiative, establishing a $70 billion re-lending programme aimed at bolstering the nation’s science and technology sectors. This initiative, disclosed in a statement on Sunday, underscores China’s commitment to fostering innovation and technological advancement.
The programme, totaling 500 billion yuan, will facilitate loans through 21 banks to small and midsize technology enterprises at an attractive interest rate of 1.75%. Moreover, these one-year loans are eligible for extension twice, each time for up to a year, as detailed in the statement.
Amid challenges posed by a property crisis and tensions with major trading partners, China’s policymakers are proactively seeking measures to enhance liquidity and instill confidence in the economy. This move signals a strategic effort to fortify China’s position as a global leader in technology and innovation, fostering growth and resilience in the face of economic headwinds.
