(Yicai Global) Nov. 14 -- The Shanghai branch of the People's Bank of China will introduce more debt financing tools as soon as possible to increase the ways private firms and tech companies can borrow money.
The central bank's sub-branch will use monetary policy vehicles to improve financing for private, scientific and tech innovation firms, it said on its website yesterday.
Some businesses have already benefited from the preferential policies but the central bank urges regional lenders to offer more discount notes and refinancing tools for private enterprises to cut their borrowing costs.
The bank has made a list of manufacturers and leading enterprises and planned to offer them CNY3.6 billion (USD519.4 million) this month to replace old loans with new ones.
This year, the PBOC branch has issued CNY5.3 billion (USD761.9 million) in refinancing to eight regional lenders, including rural commercial banks, which is 55 percent more than last year. Banks that have qualified for the cash injection have a proven track record of channeling funds to small and micro enterprises.
At the end of the third quarter, the outstanding loans to such firms stood at CNY233.7 billion, up 42 percent from the same period last year, according to the Shanghai unit.
Editor: Emmi Laine