(Yicai Global) Oct 24 — Efforts by Shanghai’s banking sector to support the real economy, including technology companies and manufacturers, led to an increase in outstanding loans of CNY 725.3 billion ( 100 billion USD) in the first three quarters, from one a year earlier, according to the latest official statistics.
The loan balance stood at 10.26 trillion CNY (1.4 trillion USD) as of September 30, according to the Shanghai branch of the China Banking and Insurance Regulatory Commission. More than 6.5 trillion yuan was in medium and long-term loans, accounting for nearly 64% of the total.
Shanghai improved financial services for tech companies through innovative initiatives that helped boost the loan balance to these companies by 65% to 654.2 billion CNY (90.2 billion USD) in the first half compared to it a year ago.
Bank of Shanghai has launched a series of financial products to support technology companies at various stages, including research and development and intellectual property collateral loans. The Shanghai Pudong Development Bank provides interest-free loans for a fixed period to technology companies as well as small and micro enterprises to reduce their financing costs.
Shanghai has also been scrambling to boost credit support for high-tech manufacturers, with their loan balances jumping 33% from a year ago to 1.26 trillion yuan ($173.7 billion). dollars) as of September 30. The annual increases for instrument and meter makers, transportation equipment makers and automakers reached 103%, 84% and 74% respectively, according to the CBIRC’s Shanghai office.
Shanghai insurers have also supported the real economy by providing loan performance guarantees of more than 100 billion yuan in the first three quarters. CNY 13 billion went to small and medium tech companies, according to the data.
The financial sector has also played an important role in cushioning the impact of the Covid-19 pandemic. By the end of the third quarter, Shanghai banks had provided relief financing worth CNY 242.4 billion to 76,000 borrowers, as well as CNY 743.4 billion in refinancing loans.
Editors: Dou Shicong, Futura Costaglione