Chinese Banks To Loan $17.5 Billion To Replenish The Private Sector

Chinese banks have agreed to lend 120 billion yuan ($17.5 billion) to private firms, according to the central bank, as policymakers pledge to strengthen support for the private sector, which is critical for growth and job creation.

Credit line agreements were signed on Tuesday in China's commercial hub of Shanghai by 10 banks and 30 private firms, according to a statement from the People's Bank of China's local branch.

Private companies are active in the integrated circuits, aerospace, artificial intelligence, information technology, transportation, and logistics sectors.

Last week, the central bank stated that it will ensure that financial assistance to private firms is proportionate to their contributions to economic and social development.

Following a three-year crackdown on the tech and real estate sectors, Chinese leaders have recently launched a charm offensive aimed at boosting private entrepreneurs' confidence.

Local governments have rushed to issue a flurry of policies in recent weeks, with the majority of them focusing on tax relief, credit assistance, and red tape reduction.