Zhongguancun launches 20 billion "Zhongguancun anti-epidemic loan" with 8 financial institutions

chinadaily.com.cn | Updated: Mar 18, 2020 L M S

The Zhongguancun Administrative Committee held an online press conference on March 18 to announce the launch of a 20 billion yuan ($2.83 billion) "Zhongguancun anti-epidemic loan". 

The product has advantages such as large quotas, extensive variety, low interest rates (as low as 2.05 percent) and short approval time (as short as one day). 

According to reports, the product, which is supported by the Operations Office of the People's Bank of China, and jointly launched by several parties including ICBC Beijing Branch and Beijing Zhongguancun Bank, has a credit line of 20 billion yuan. 

More than 90 percent of the enterprises in Zhongguancun are small and micro enterprises. These enterprises, with an annual financing gap of about 600 billion yuan, have more credit demands in face of the epidemic. 

According to Zhai Lixin, director of the Zhongguancun Administrative Committee, the "Zhongguancun anti-epidemic loan" gives priority to Zhongguancun enterprises which participate in epidemic prevention and control and have a large development potential, including national and Zhongguancun high-tech enterprises. It adopts financing methods such as pledges of intellectual property rights, stock rights and receivables, as well as credit and low-cost financing. 

The product is divided into one-year and three-year loans. It includes loans based on credit, intellectual property, stock rights, receivables, and security collateral as well as other varieties, and supports new models such as investment-loan linkage and un-repaid loan renewals.