PBOC Offers Financial Support for Shanghai's Technology Innovation Firms
Zhang Yushuo
DATE:  Nov 23 2018
/ SOURCE:  yicai
PBOC Offers Financial Support for Shanghai's Technology Innovation Firms PBOC Offers Financial Support for Shanghai's Technology Innovation Firms

(Yicai Global) Nov. 23 -- The Shanghai office of the People's Bank of China, the country's central bank, issued guidelines to bolster financial services for private and technologically innovative companies yesterday.

PBOC included 20 recommendations for four major sectors in the circular to further improve financial services for these firms. It seeks to match more financial resources with those in need to spur Shanghai's private sector growth and build the city into a tech innovation center.

The central bank will address these companies' lack of confidence, high costs and difficulties of financing, and build a fair and convenient business environment, per the document.

A variety of monetary and credit instruments will support these preferential policies, it said.

The bank will allocate refinancing quotas of at least CNY10 billion (USD1.4 billion) to technologically innovative private and small companies and those in advanced manufacturing and push financial institutions to increase their credit supply.

It will also strengthen support to rediscount more than CNY15 billion (USD2.2 billion) for them.

PBOC will implement the policy of 'private company bond financing support tools,' prop up private businesses which have good market prospects and technological strengths which are experiencing temporary bond financing difficulties. 

It will use pledged supplementary lending and make financial institutions use mortgage replenishment loans to extend credit to these firms and those in the foreign trade sector and reduce their financing costs.

Editor: Ben Armour

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Keywords:   Central Bank,Private Sector