(Yicai Global) Oct. 24 -- Efforts by Shanghai’s banking sector to support the real economy, including tech firms and manufacturers, resulted in the balance of outstanding loans climbing by CNY725.3 billion (USD100 billion) in the first three quarters from a year earlier, according to the latest official statistics.

The loan balance totaled CNY10.26 trillion (USD1.4 trillion) as of Sept. 30, according to the Shanghai branch of the China Banking and Insurance Regulatory Commission. Over CNY6.5 trillion were medium- and long-term loans, accounting for nearly 64 percent of the total.

Shanghai has been improving financial services for tech companies through innovative initiatives that helped to lift the balance of loans to such businesses by 65 percent to CNY654.2 billion (USD90.2 billion) in the first half from a year ago.

Bank of Shanghai launched a series of financial products to support tech firms at different stages, including research and development and intellectual property collateral loans. Shanghai Pudong Development Bank provides interest-free loans for a set period to tech companies as well as small and micro enterprises to ease their financing costs.

Shanghai has also striven to bolster credit support for advanced manufacturers, with their loan balance jumping 33 percent from a year ago to CNY1.26 trillion (USD173.7 billion) as of Sept. 30. The annual increases for instrument and meter makers, transport equipment manufacturers, and auto producers reached 103 percent, 84 percent, and 74 percent, respectively, according to the CBIRC’s Shanghai office.

Shanghai's insurers also supported the real economy by providing loan performance guarantees of more than CNY100 billion in the first three quarters. CNY13 billion of that went to small and mid-sized technology firms, the data showed.

The financial sector also played an important role in cushioning the impact of the Covid-19 pandemic. By the end of the third quarter, banks in Shanghai had provided relief financing worth CNY242.4 billion to 76,000 borrowers, as well as CNY743.4 billion in refinancing loans.

Editors: Dou Shicong, Futura Costaglione