China Provides Cheap Loans for Businesses to Upgrade Equipment
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China’s central bank has established a 500 billion ($68.8 billion) re-lending fund as part of a central government action plan to encourage businesses to upgrade equipment.
The fund will guide financial institutions to increase support for technological innovation.
The central bank’s one-year re-lending loans bear an interest rate of 1.75%, and can be extended twice, while central government will provide a one percentage point discount on the loan interest to lenders who back eligible projects.

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- China's central bank introduced a $68.8 billion re-lending fund to boost businesses' equipment upgrades.
- Loans under this scheme have a 1.75% interest rate, extendable twice, with a 1% central government interest discount for eligible projects.
- Eligible projects focus on energy conservation, industrial digital transformation, and agricultural machinery, with strict compliance monitoring.
- March 7, 2024:
- Start date for companies to sign loan and procurement contracts to benefit from the discount policy.
- By July 10, 2024:
- Provincial finance departments must report their funding needs for 2024 to the Ministry of Finance.
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