China Boosts Lending to Tech Firms

China aims to boost support for technology enterprises by encouraging banks to extend credit and long-term loans. The National Financial Regulatory Administration announced that banks can offer working capital loans to these enterprises with terms up to five years.

China is set to enhance support for its technology sector, urging banks to expand their lending to tech enterprises. The National Financial Regulatory Administration, in a recent announcement, stated that banks are encouraged to increase credit loans and offer medium- to long-term financial support to such firms.

Importantly, the statement specified that banks now have the green light to extend the duration of working capital loans for tech enterprises, with a maximum period of up to five years. This move is seen as a strategic push to fortify the financial backbone of the tech industry.

The regulator's directive aims to stimulate growth within the technology sector, a key area of focus for China's economic advancement. By offering more favorable loan terms, banks can play a crucial role in nurturing innovation and technological development.

(With inputs from agencies.)