- Banks to fund advanced sectors like chips, software.
- Tech firms get fast-track IPO, M&A access.
- Policy curbs overcapacity, boosts industrial upgrading.
China has enacted sweeping new financial guidelines, endorsed by seven state ministries, including the Ministry of Finance and the central bank, to encourage support for advanced manufacturing industries. These include the integrated circuit industry, medical equipment, industrial software, and advanced material. The overall thrust of the policy forum is to provide new life to an economy operating under deflationary pressure where domestic demand is weak.
As per the plan, banks will be instructed to provide medium- and long-term financing to key industries—by freeing up capital from the property sector and redeploying it toward the national priorities (e.g., self-reliance for semiconductors, green manufacturing, technology innovation, etc.). Companies producing breakthrough technologies will have access to "green channels"—express routes through IPOss, bond issuances, mergers, and acquisitions.
Also Read: China-Malaysia Deepen BRI Ties in Clean Energy and Digital Push
The goal is to create, by 2027, a financial ecosystem that supports smart and green manufacturing, breaks up unhealthy price wars and overcapacity. There will be customized support to companies in distress due to an external shock, and mining companies will be directly supported to stabilize raw material sourcing and pricing.
This financial shift supports larger political agendas: Chinese leadership has committed to stronger tools of intervention in managing market disorder, structural reform, and building consumer demand as manufacturing contracts and non-manufacturing activity slows down.
The transition reflects an intentional effort under the “Made in China 2025” and state industrial policy agenda—a long-standing strategy to achieve rising domestic value-chain upgrading, higher self-sufficiency for electronics and material, and growth in emerging technologies. China's leadership is catalyzing this transformation using a toolbox of guidance funds, credit support, and industrial policy.