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China central bank to set up $70 billion tech re-lending programme

BEIJING (Reuters) – China’s central bank will set up a 500 billion yuan ($70 billion) re-lending programme to support the country’s science and technology sectors, according to a statement released on Sunday.

The programme will offer loans via 21 banks to small and midsize technology companies at an interest rate of 1.75%. The one-year loans can be extended twice, for up to a year each time, the statement said.

China’s policymakers look to boost liquidity and increase confidence in the world’s second-biggest economy amid headwinds from a property crisis and frictions with major trading partners.

($1 = 7.2330 Chinese yuan renminbi)

(Reporting by Andrew Hayley; editing by William Mallard)

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