Chinese Banks Balk at Regulator Push to Fund Tech — SkimNews
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- Chinese regulators have instructed banks to expand lending to tech companies, a strategy Bloomberg sources say marks a break from Beijing's reliance on subsidies and state funding.
- Chinese banks are resisting the directive, continuing to favor borrowers with stable cash flows and profitability over unprofitable tech startups.
Why it matters: The stated gap between Beijing's lending directive and banks' credit preferences exposes friction in regulators' pivot from subsidies — banks told to back tech firms continue favoring profitable borrowers, meaning the push toward commercial bank financing leaves unprofitable ventures reliant on the very state channels Beijing is trying to move away from.
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