The People's Bank of China announced on the 28th that it would set up a special re loan for equipment upgrading and transformation, specifically supporting financial institutions to provide loans at an interest rate of no more than 3.2% for equipment upgrading and transformation in manufacturing, social services, small and medium-sized enterprises, self-employed businesses and other fields.
It is reported that the special refinancing line for equipment upgrading and transformation is more than 200 billion yuan, with an interest rate of 1.75%, a term of one year, and two extensions, each with a term of one year. The recipients include 21 financial institutions, including the National Development Bank, policy banks, state-owned commercial banks, China Postal Savings Bank, and joint-stock commercial banks. The financial support will be provided according to 100% of the loan principal granted by financial institutions that meet the requirements. In addition, the special refinancing policy supports the purchase and renovation of equipment in 10 fields, including education, health, culture, tourism and sports, training bases, charging piles, urban underground comprehensive pipe gallery, new infrastructure, industrial digital transformation, energy conservation and carbon reduction transformation and upgrading in key areas, and waste household appliances recycling and treatment system.
The relevant person in charge of the People's Bank of China said that the list system was applied to the special refinancing for equipment renovation. Relying on the coordination mechanism for promoting effective investment in important projects, the National Development and Reform Commission, together with local governments, relevant central ministries and central enterprises, formed a list of alternative projects in different fields. Financial institutions, in accordance with the principle of marketization, make independent decisions and take their own risks to grant loans to the items on the list. Special re loans are issued monthly through the direct mechanism of "loan first and then loan".
Wen Bin, the chief researcher of China Health Bank, said that in the past 10 years, the proportion of investment in technological transformation in the manufacturing industry has remained stable at more than 40%, which is an important force to boost the investment in the manufacturing industry and the transformation and upgrading of the manufacturing industry. From January to July this year, the investment in technological transformation of manufacturing industry increased by 12.5% year on year, 2.6 percentage points higher than the total investment in manufacturing industry; The proportion of technological transformation investment in total manufacturing investment was 41.5%, 0.9 percentage points higher than the same period last year. In the context of the current weakening of external demand and the dependence of domestic demand on infrastructure, it is conducive to expanding the market demand of the manufacturing industry, promoting consumption recovery as the main driving force of the economy and enhancing the development potential by promoting the upgrading and transformation of equipment in areas where economic and social development is weak.
（Source: China Belt and Road）
