The share of China's science and technology small firms holding a bank loan will stay below 52% at the end of 2026, up less than 2 points from 50.2% in end-2025.

Made

30 Sep 2026

Owen Bae

Market

China

Outcome

Unresolved

The People's Bank of China added 200 billion yuan ($30 billion) to its relending quota for technology innovation and equipment upgrades, and raised the share of each eligible loan it refinances from 60% to 100%. That cuts banks' funding costs but not the default risk they carry on a start-up with no collateral. Growth in firms accessing credit has consistently lagged behind total credit volume, as lending to tech firms grew 20.1% in the second quarter while the share with a loan rose only 0.6 points to 50.8%. The easing measures will deepen credit among firms banks already serve but fail to reach new ones. Headline lending figures will look strong while early-stage firms stay reliant on venture capital and government guidance funds.

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