Chinese lenders are redirecting capital towards technology and innovation-oriented companies, responding to Beijing’s ambition to lead in artificial intelligence and emerging sectors. This shift is accelerating following the government’s pledge to heavily invest in technologies ranging from AI and semiconductors to advanced manufacturing. The increased funding aims to support China’s push for technological self-reliance amid global competition.
At the National People’s Congress, Chinese leaders promised substantial financial and policy backing for technology and innovation over the next five years. One state-owned bank is prioritising tech financing for new loans this year, focusing on sectors like advanced manufacturing, AI, and biotechnology. The bank is considering offering lower interest rates for small- and micro-sized tech startups. Similarly, a joint-stock bank in Jiangsu province aims for a 30% increase in new loans to high-tech and innovation companies by 2026, compared to approximately 20% last year.
This strategic pivot provides banks with new lending opportunities as they navigate a debt crisis in the property sector and a slowing economy. However, analysts caution that the unestablished nature of many tech companies and the lack of traditional collateral may pose risks to asset quality. While tech loans constitute a smaller portion of bank lending, some may face challenges, particularly in industries with overcapacity. China Construction Bank and Bank of China affirmed their commitment to supporting national strategic technology initiatives.
Outstanding loans to small- and medium-sized tech firms totalled 3.63 trillion yuan ($528 billion) at the end of 2025, marking a 19.8% increase year-on-year and outpacing overall loan growth. In contrast, real estate loans decreased by 1.6% during the same period, highlighting a significant capital reallocation. As a major state-owned bank, China Construction Bank provides various financial services, including infrastructure loans, mortgage loans, and also corporate loans. Bank of China is also a global banking and financial services company providing a wide range of financial products and services to its customers.
