FINANCE

China Urges Banks to Expand Financing for AI, Asset-Light Service Firms

Published: Sep. 29, 2026 6:19 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

The People’s Bank of China. Photo: VCG

China’s central bank and seven other government departments have urged financial institutions to shift away from collateral-heavy lending and expand financing for asset-light service businesses, including AI and software.

The guidelines, issued Monday, call on banks to develop credit products suited to service businesses, and improve intellectual property pledge financing and risk assessment for asset-light firms.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and Bloomberg - for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

China's central bank and seven departments urged banks to shift from collateral-heavy lending toward asset-light services, including AI and software, via new credit and IP pledge products.
Banks should target 3-5 key sectors (national) or 1-2 regional industries, supporting AI research, datasets, and digital infrastructure like computing power.
Guidelines suggest using order, cash flow, and rent data for catering, retail, and elderly care, building on computing-power/token-use indicators and a relending facility.

AI generated, for reference only

What Happened When

September 28, 2026：: China's central bank and seven other government departments issued guidelines urging financial institutions to shift from collateral-heavy lending to financing for asset-light service businesses, including AI and software, and to develop credit products suited to service sectors.

AI generated, for reference only