A lending program of up to 500 billion yuan ($69 billion) will be established by the People's Bank of China to bolster scientific and technological innovation and project renovations.
A statement posted on Sunday by the PBOC website said that the loans will have a 1.75% interest rate and a one-year duration, with the option to extend for two more years. There will be 21 banks that receive the lending quota.
According to the announcement, the refinancing program would offer loan support for high-end projects and assist small and medium-sized technology companies during their starting and growth phases.
In March, PBOC governor Pan Gongsheng announced plans to launch a new lending effort, and since then, top economic leaders in China have dropped hints about a possible liquidity injection, which has led to this new lending initiative. As the world's second-biggest economy continues to grapple with a persistent property crisis and sluggish consumer morale, policymakers are striving to restore faith in the economy.