Making solid progress in technology finance, green finance, inclusive finance, old-age finance and digital finance is a focal point in providing financial services to support high-quality development of the real economy, and a significant aspect of deepening the supply-side structural reform of the finance sector. During the 14th Five-Year Plan period, the People’s Bank of China (PBOC) has continued to guide the financial system in enhancing its capacity to serve the real economy. Centering on making significant efforts in the five major areas and supporting the expansion of domestic demand, the PBOC has channeled more financial resources to major strategies, key areas, and weak links of the national economy, thereby facilitating a virtuous circle between finance and the real economy. Recently, a journalist from Financial News had an exclusive interview with the head of the PBOC’s Credit Policy Department.
Financial News: During the 14th Five-Year Plan period, what progress and achievements have been made by the PBOC in advancing the “five major areas” in finance?
Head of the Credit Policy Department of the PBOC: In recent years, the PBOC has advanced efforts on the “five major areas” in finance by strengthening institutional and market development. A preliminary policy framework has been established. It is guided by the institutional system for the “five major areas” in finance, driven by policy tools and statistical assessment systems, and supported by inter-ministerial coordination mechanisms and the credit market management system. This framework has continuously increased the share of financing related to the “five major areas” in finance and improved the quality and efficiency of financial services. The institutional framework for the “five major areas” in finance can be summarized as a “1+5” structure. The “1” refers to the Guiding Opinions of the General Office of the State Council on Advancing the “Five Major Areas” in Finance, while the “5” refers to the specialized guidance documents spearheaded by the PBOC, covering the five specific areas of technology finance, green finance, inclusive finance, old-age finance and digital finance.
Overall, during the 14th Five-Year Plan period, financial support has been continuously strengthened. As of end-August 2025, outstanding loans related to the “five major areas” in finance reached RMB105.6 trillion, accounting for 38.7 percent of total loans—an increase of 13.2 percent year on year, 6.6 percentage points higher than the average growth rate of all loans. Loans to sectors including science and technology, green development, inclusive micro and small businesses (MSBs), elderly care, and the digital economy registered year-on-year growth of 12.1 percent, 23.8 percent, 10.8 percent, 52 percent, and 12.5 percent, respectively, all significantly outpacing the average growth rate of all loans. The availability of financing has been significantly enhanced. The loans supported over 60 million inclusive MSBs, covering about one-third of all business entities. Nearly 50 percent of technology-based small and medium-sized enterprises (SMEs) have obtained loans. The financing costs for the real economy have remained stable with a slight decline. In August, the weighted average interest rate on newly issued corporate loans stood at around 3.1 percent, down 40 basis points year on year. Financing channels have also become more diversified. As of end-August 2025, a total of 244 entities had issued RMB611.28 billion of sci-tech innovation bonds in the interbank bond market. By the end of Q2 2025, the outstanding green bonds had reached RMB2.2 trillion, with cumulative issuance totaling RMB4.6 trillion.
Financial News: During the 14th Five-Year Plan period, the PBOC has introduced a series of policy measures to support technology finance. What progress and results have been achieved so far?
Head of the Credit Policy Department of the PBOC: Technology finance ranks the first among the “five major areas” in finance. In recent years, the PBOC, in close collaboration with relevant government departments, has continuously improved the policy framework and made comprehensive use of credit, bond, and equity instruments to strengthen financial support and provide full-chain financial services for sci-tech research and development as well as the commercialization of their achievements. These efforts have provided strong financial backing for building China into a scientific and technological powerhouse and achieving greater self-reliance and strength, mainly in the following five areas.
First, the policy system for technology finance has been continuously improved. An action plan has been formulated to step up support for the financing of sci-tech enterprises, along with the establishment of a coordinated mechanism for advancing technology finance and the improvement of top-level institutional design. The Work Plan on Boosting the Development of Technology Finance was unveiled. Moreover, the PBOC, together with the Ministry of Science and Technology (MOST) and five other authorities, issued the Several Policy Measures to Accelerate the Construction of a Technology Finance System to Strongly Support High-Level Technological Self-reliance and Self-Improvement, so as to advance reform and innovation in key areas. Efforts have also been made to continuously optimize the regional layout of technology finance, foster a sound financial ecosystem in regions with a high concentration of sci-tech resources, and support seven localities, including Jinan, Shanghai, Nanjing, and Beijing’s Zhongguancun area, in further advancing the development of pilot zones for sci-tech finance reform.
Second, financing support for the sci-tech sector has continued to strengthen in both intensity and quality. Technology loans have maintained robust growth. As of end-August 2025, new technology loans accounted for 28.8 percent of total new loans, becoming an important driving force for credit growth. Outstanding loans to technology-based SMEs reached RMB3.4 trillion, up 22 percent year on year, marking the fifth consecutive year of growth above 20 percent. The coverage of financial services has steadily expanded. As of end-August 2025, the share of innovative SMEs with access to bank loans had risen to 66 percent, while the figure for “specialized, sophisticated, distinctive and innovative” SMEs had reached 72.3 percent. The financing cost for technology-based enterprises has continued to decline steadily. In August 2025, the weighted average interest rate on technology loans stood at 2.8 percent, down 0.5 percentage points from last year.
Third, financial policy instruments supporting sci-tech innovation have become more refined and targeted. In 2022, the PBOC established an RMB400 billion central bank lending for sci-tech innovation to guide financial institutions to intensify support for sci-tech innovation. In April 2024, the central bank lending for sci-tech innovation and technological transformation was introduced to encourage financial institutions to enhance support for first-time loans to technology-based SMEs and to finance equipment renewal projects in key areas. In May 2025, policy support was further strengthened. The quota for the central bank lending for sci-tech innovation and technological transformation was increased from RMB500 billion to RMB800 billion, and its interest rate was lowered from 1.75 percent to 1.5 percent. At the end of August, banks had signed RMB2.4 trillion worth of loan contracts with enterprises under this program, with an outstanding loan balance of RMB943.7 billion, cumulatively supporting 18,000 technology-based SMEs in obtaining their first loans and providing funding for 5,330 equipment renewal projects in key areas.
Fourth, the bond market has provided stronger and more adaptive support for sci-tech innovation. In April 2022, the PBOC launched the bond products for sci-tech innovation (sci-tech innovation bills) in the interbank bond market to broaden financing channels for technology-based “specialized, sophisticated, distinctive, and innovative” enterprises. In May 2025, the PBOC, together with the China Securities Regulatory Commission, the MOST, and the National Financial Regulatory Administration, established a “Sci-tech Board” in the bond market to support the issuance of sci-tech innovation bonds by technology-based enterprises, financial institutions, and equity investment institutions. This initiative has enriched the product system of sci-tech innovation bonds and improved the relevant institutional framework. To support equity financing and venture capital, the PBOC introduced risk-sharing tools for sci-tech innovation bonds, and provided central bank lending funds. Working with local governments and market-based credit enhancement institutions, it has supported equity investment institutions in issuing low-cost and long-term sci-tech innovation bonds through means such as guaranteed credit enhancement and direct investment. Financing through sci-tech innovation bonds has expanded significantly. As of end-August 2025, a total of 244 entities in the interbank bond market had issued more than RMB600 billion worth of sci-tech innovation bonds, with markedly lower financing costs, longer maturities, and faster capital flows into the sci-tech sector.
Fifth, the special action to enhance technology finance service capabilities has achieved notable results. The PBOC has strengthened macro-level credit policy guidance, encouraging banks to establish dedicated organizational structures, specialized risk management systems, tailored product portfolios, and targeted performance assessment mechanisms to better serve sci-tech innovation and continuously enhance their professional capabilities. At present, major large and medium-sized banks have developed credit risk assessment systems that emphasize enterprises’ technological innovation capacity and growth potential. More than half of these banks have set up specialized sci-tech financial departments at their headquarters and key regional branches. Financial products and service models tailored to the characteristics of technology-based enterprises, such as intellectual property pledge loans and innovation credit loans, have continued to expand in both scale and coverage.
Financial News: During the 14th Five-Year Plan period, what measures has the PBOC taken to reinforce financial support for boosting and expanding consumption, and what progress has been made?
Head of the Credit Policy Department of the PBOC: During the 14th Five-Year Plan period, to help boost consumption and expand domestic demand in an all-round way, the PBOC launched a series of financial support policies. These measures have effectively stimulated the supply of consumer goods and services and helped better meet the consumption needs of residents.
First, the policy system for providing financial support for boosting consumption has been established and improved. The PBOC led the launch of the Guidelines on Reinforcing Financial Support for Boosting and Expanding Consumption, and encouraged financial institutions to strengthen support for both the supply and demand sides of consumption, with a focus on key areas and links in the consumption chain. In collaboration with relevant government departments, the PBOC also introduced a series of policy documents to enhance financial support for consumption in key sectors such as elderly care, sports, and cultural tourism, thereby providing targeted support for the high-quality development of the consumer industry. The PBOC has optimized and adjusted credit policies for automobile consumption, removing the minimum down payment requirement for personal auto loans to better meet residents’ car purchase needs.
Second, efforts have been made to strengthen support for increasing consumption supply. Leveraging the role of structural monetary policy instruments, the PBOC set up an RMB500 billion central bank lending facility for service consumption and elderly care. This facility is designed to incentivize and guide financial institutions to increase credit supply to key consumption sectors such as accommodation and catering, culture, sports and entertainment, education, resident services, and tourism, while encouraging them to develop innovative financial products and services that support consumption. As of end-August 2025, outstanding loans to key sectors of service consumption nationwide reached RMB2.78 trillion, up 5.12 percent year on year.
Third, the households’ financing needs for consumption have been better met. Efforts have been made to boost the sound development of consumer finance. Financial institutions were encouraged to innovate consumer finance products and service systems, on the premise of controllable risks, to meet the diversified and personalized financing needs of consumers and enhance the accessibility of consumer credit. The PBOC has also worked to implement the interest subsidy policy for consumer loans, helping reduce households’ financing costs. As of end-August 2025, outstanding household consumer loans (excluding personal housing loans) stood at RMB21.13 trillion, representing a year-on-year increase of 4.9 percent.
Fourth, refinancing channels for consumer credit have been further diversified. Eligible financial institutions have been encouraged to issue financial bonds and credit asset-backed securities to broaden their funding sources and enhance their capacities to supply consumer credit. Efforts have also been made to expand the scope and scale of securitization of retail loan assets, including auto, consumer, and credit card loans. From January to July 2025, auto finance companies and other institutions issued RMB21.5 billion in financial bonds and RMB48.4 billion in credit asset-backed securities.
Fifth, consumer payment services have become more convenient. Payment service providers are encouraged to focus on consumer payment needs, optimize payment processes, and innovate products and services. Efforts have been made to promote the parallel development and mutual complementarity of multiple modes of payment, including bank cards, mobile payments, and cash, to build a diversified payment service system and continuously enhance the convenience of domestic consumption payments. In light of key consumption scenarios involving overseas visitors, the PBOC has actively advanced the upgrading of systems to accept foreign bank cards and continued to improve the mobile payment experience, thereby facilitating inbound consumption.
Moving forward, in line with the arrangements of the Communist Party of China Central Committee and the State Council, the PBOC will effectively implement various policies on providing financial support for consumption. It will guide financial institutions to innovate products and services that support consumption, meet residents’ diversified and personalized funding needs, strengthen credit support for business entities in the consumer sector, and enhance the role of finance in boosting and expanding consumption.
