China asks banks to increase credit support to technology firms

BEIJING (Reuters) - China will encourage banks to increase the issuance of credit loans and medium- and long-term loans to technology enterprises, the National Financial Regulatory Administration said in a statement on Tuesday.

Banks can extend the term for working capital loans to such enterprises to a maximum period of 5 years, the regulator said.

China is stepping up efforts to boost technology development amid concerns about a slowdown in growth and growing geopolitical tension with the United States.

Financial institutions should treat foreign and domestic technology companies equally, as should all types of market entities regardless of ownership, the regulator said.

The regulator said it will support eligible commercial banks to set up financial asset investment companies to make equity investments in technology firms in regions with strong economic strength and high research and development demand.

Banks, insurers and asset managers are encouraged to increase investment in sci-tech innovation bonds, it said.

(Reporting by Ziyi Tang and Ryan Woo; Editing by Kirsten Donovan)

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