The People’s Bank of China has released a guideline aimed at enhancing financial support for advancing new industrialization, with a focus on boosting advanced, smart and green manufacturing.
The guideline, jointly released by the People’s Bank of China and six other authorities, includes tailored support for manufacturers, as well as measures to curb inefficient competition.
By 2027, a mature financial system with diverse tools and tighter coordination among credit, bonds, equity and insurance is expected to meet manufacturers’ funding needs and support broader industrial upgrading.
“This guideline shows China’s push to use financial tools to drive new industrialization and boost manufacturing strength,” said Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies at Renmin University of China.
Support for Breakthrough Technologies
The guideline encourages banks to provide long-term financing for breakthroughs in key technologies such as semiconductors, industrial mother machines, and foundational software.
- Enterprises that achieve core technology breakthroughs will gain fast-track access to listing, bond issuance, and merger and acquisition deals.
- First-of-a-kind equipment and materials are also eligible for enhanced financial support.
The guideline also calls for attracting long-term, patient capital to boost tech commercialization.
It encourages monthly financing road shows and listing incubation for key industrial chains, and urges private capital toward early-stage, small-scale, long-term, and hard-tech investments.
Improving Financial Services for Traditional Manufacturing
The guideline encourages banks to increase lending for the sector’s high-end, smart and green upgrades.
Companies can update intelligent or eco-friendly equipment through financial leasing, with related debt eligible for securitization.
Listed firms are encouraged to pursue sector consolidation and industrial upgrading via overall listing or private placements.
Enhancing Sci-Tech Finance
The guideline calls for improving the quality and efficiency of sci-tech finance to support the growth of emerging industries and the forward-looking deployment of future sectors.
Financial institutions are encouraged to develop diversified, relay-style service models, increase sci-tech lending, and boost investment and underwriting of innovation-focused bonds.
The use of small and medium-sized enterprises specialization evaluations will be expanded to enhance credit services.
Expansion of Cross-Border Financial Services
The guideline calls for enhancing the accessibility of cross-border financial services to support high-level two-way opening-up.
It encourages optimizing financial products and services for foreign trade in the manufacturing sector, launching targeted initiatives to support SMEs in going global, and facilitating current account transactions to ensure secure and efficient cross-border settlements.
Boosting Digital Finance
The guideline calls for boosting digital finance to better integrate the digital and real economies.
5G and industrial internet projects are eligible for medium- and long-term loans, and can also seek funding via leasing or securitization.
Banks are encouraged to offer one-stop digital platforms, while big data and artificial intelligence should be used to improve services for SMEs.
Joint Risk Controls
The guideline also calls for stronger joint risk controls, urging banks to align with industrial policy, monitor fund use, prevent misuse, and step up disposal of bad loans through restructuring or write-offs.
“The policy redefines finance as a core driver of industrial growth,” said Dong Shaopeng. “It’s no longer just about providing capital, but about embedding funding, risk control, and tailored tools to guide industries toward high-end, smart, and green development.”
“In the past, industries chased money and waited for subsidies,” Dong noted. “Now, financing is built into the system from the start, forming a closed loop involving tech, industry, and finance.”
“The focus on tech, green and digital finance shows China’s dual strategy — upgrading traditional sectors while fostering future industries,” Dong said. “With aligned policy, capital and talent, China is laying a fast, resilient path for industrial growth.”
“China has stepped up bond and equity financing to support new industrialization,” the Xinhua News Agency reported. “As of end-June, medium- and long-term loans to the manufacturing sector were up 8.7 percent year-on-year, outpacing overall loan growth.
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