central bank

yānghang

央行

encourage

gǔlì

鼓励

banks

yínhang

银行

expand

kuòdà

扩大

AI

réngōng zhìnéng

人工智能

financing

róngjī

融资

。

New Words

News in English

China Central Bank Urges Banks to Expand Financing for AI and Asset-Light Businesses

Chinas central bank and financial regulators issued guidance urging banks to expand credit products for AI companies and asset-light service businesses, marking a shift toward innovation-focused lending strategies.

Chinas central bank and seven other government departments released guidance encouraging financial institutions to shift away from traditional collateral-heavy lending and expand credit products for artificial intelligence companies and asset-light service businesses. Banks are urged to develop credit products tailored to service sectors characteristics and improve intellectual property pledge financing. The AI industry faces massive financing demands, and state-owned banks including Bank of China and Agricultural Bank of China have already launched innovative token-based loans and computing power credit lines. Daily token usage in China has surged from 100 billion to over 14 trillion over the past two years, reflecting explosive adoption of AI applications. This policy initiative marks a pivotal shift in Chinas lending strategy toward innovation and technology-driven economic growth.

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