China's banks to lend $17.5 bln to private firms, central bank says

Kitco Media
By Reuters
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Reuters
BEIJING, April 18 (Reuters) - Chinese banks have agreed to lend 120 billion yuan ($17.5 billion) in loans to private firms, the central bank said, as policymakers pledge to shore up support for the private sector which is vital for growth and jobs. Agreements on the credit lines were signed between 10 banks and 30 private firms on Tuesday in China's commercial hub of Shanghai, the local branch of the People's Bank of China said in a statement. The private firms operate in sectors of integrated circuits, aerospace, artificial intelligence, information technology, transportation and logistics. The central bank said last week that it will ensure that financial support for private firms is in line with their contributions to economic and social development. Chinese leaders have recently launched a charm offensive towards private entrepreneurs, pledging to boost their confidence following a three-year crackdown on the tech and property sectors. Local governments have rushed to issue a flurry of policies in recent weeks, mostly focusing on tax, credit support and red-tape cuts.

($1 = 6.8757 Chinese yuan renminbi) (Reporting by Kevin Yao, editing by Ed Osmond)

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