China Boosts Loan Support for Tech Enterprises Amidst Global Tensions

China's National Financial Regulatory Administration is urging banks to increase credit and long-term loans to technology firms. Banks may extend working capital loan terms to five years. This move aims to bolster tech growth amidst slowing economic growth and rising U.S.-China geopolitical tensions.

In a strategic move to bolster its technology sector, China is urging banks to ramp up credit and long-term loans to technology enterprises, according to an announcement from the National Financial Regulatory Administration on Tuesday.

The regulator has authorized banks to extend working capital loan terms for these enterprises to a maximum of five years. This initiative is part of China's broader strategy to stimulate tech development amid economic challenges and increasing geopolitical tensions with the United States.

Additionally, the regulator has underscored the importance of treating both foreign and domestic technology companies equally and is encouraging financial institutions to invest more in sci-tech innovation bonds. Eligible banks may even establish financial asset investment companies to make equity investments in promising tech firms, especially in regions with strong economic growth and R&D needs.

(With inputs from agencies.)