November 30 2018

PBOC Shanghai Head Office Promises 10bn Yuan in Re-lending Quota to Private and Technology Firms

Announcement by Shanghai Head Office of PBOC

The Shanghai Head Office of the People's Bank of China (PBOC) recently issued the Guideline about Further Strengthening Financial Services to Private Enterprises and Technology Innovation Enterprises.

The document proposed 20 measures to support private and tech firms. Among them, at least 10 billion yuan of re-lending quota will be granted to private and small firms committed to technology innovations and advanced manufacturing, and rediscount subsidies will be prioritized to technology-based small businesses with loan amount of 5 million yuan or less. Startups borrowing less than 500,000 yuan will not have to provide collateral for the loans; the maximum amount of loan for a corporate borrower is doubled to 2 million yuan.