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China rolls out relending facility for sci-tech innovation

Updated: Apr 29, 2022 Xinhua Print
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China's central bank on April 28 announced that it has established a relending facility worth 200 billion yuan (about $30.47 billion) to boost scientific and technological innovation.

The interest rate of the one-year relending arrangement stands at 1.75 percent, the People's Bank of China (PBOC) said.

The PBOC will provide low-cost funds for 21 financial institutions to guide them in issuing loans to sci-tech enterprises, so as to leverage the role of social funds in facilitating innovation, according to a statement on the bank's website.

The newly launched relending facility will be used to support high-tech enterprises, small and medium-sized enterprises boasting cutting-edge technologies, national-level technological innovation demonstration enterprises, and leading manufacturing companies, among other enterprises.

According to the statement, the PBOC will adopt a mechanism where financial institutions can apply for low-cost funding from the central bank after loans for sci-tech enterprises are released.

The PBOC will provide 60 percent of the loan principal made by financial institutions to boost technological innovation.

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