China Provides Cheap Loans for Businesses to Upgrade Equipment

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Central government is to provide a one percentage point discount on loan interest to lenders on eligible projects.

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.

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