The People’s Bank of China (PBoC) has rolled out a re-lending scheme aimed at enhancing the country’s science and technology sector. As part of this initiative, 21 banks will provide loans to small and mid-sized tech companies at a reduced interest rate of 1.75%.
These loans will have a one-year term, with the possibility of two extensions, each for an additional year.
China’s economy, currently the second largest in the world, has experienced a slowdown recently. Challenges such as a struggling property market and global trading tensions have led to diminished investment in China’s equity market from both local and foreign institutional investors.