Central bank lending for sci-tech innovation increased by RMB400 billion

The People's Bank of China has announced a significant increase in its central bank lending quota dedicated to supporting sci-tech innovation and technological upgrading initiatives.

The quota has been raised by RMB400 billion, elevating the total available funds to RMB1.2 trillion.

This strategic move aims to provide enhanced financial backing for enterprises engaged in cutting-edge scientific and technological advancements, as well as those undertaking substantial upgrades to their equipment and operational processes.

The decision aligns with broader national objectives to foster a more innovative and technologically advanced economy, ensuring that key sectors receive the necessary capital to drive progress and maintain competitiveness.

This measure is a direct implementation of decisions made by the Central Committee of the Communist Party of China and the State Council.

Beyond the increased funding, the policy's scope will also be moderately expanded to include private small and medium-sized enterprises (SMEs) that demonstrate high levels of research and development investment.

This expansion, effective from 2026, underscores the central bank's commitment to nurturing a broader base of innovative businesses, particularly within the private sector.

The overall initiative is designed to support the better implementation of the "Two New" policies, which encompass large-scale equipment upgrading programs and consumer goods trade-in initiatives.

These policies are crucial for stimulating domestic demand, modernizing industrial infrastructure, and further developing technology finance across the nation.