Representative | Image:Shutterstock
Tech sector support: China’s central bank has announced the launch of a notable initiative aimed at supporting the country’s science and technology sectors. The programme, totalling 500 billion yuan (equivalent to $70 billion), will be executed through 21 selected banks. Small and midsize technology companies will have access to loans at a favourable interest rate of 1.75 per cent.
These one-year loans can be extended twice, with each extension lasting up to a year, providing flexibility for borrowers.
This move comes amidst efforts by Chinese policymakers to address challenges such as a property crisis and trade tensions with major partners. By boosting liquidity and confidence in the economy, authorities aim to sustain growth momentum in the world’s second-largest economy.
(With Reuters Inputs)
