Chinese banks ramped up support for technology financing in the first half, with State-owned commercial lenders taking the lead and showing the early results of channeling financial resources into innovative enterprises.

As of end-June, the total balance of tech-focused loans from the six largest State-owned commercial banks had reached nearly 23 trillion yuan ($3.23 trillion). Industrial and Commercial Bank of China led the group with an outstanding balance above 6 trillion yuan, while Agricultural Bank of China's tech loan balance climbed to 4.7 trillion yuan, more than 20 percent higher than at the end of last year.

China Construction Bank reported loan growth of 1.6 trillion yuan in the first half, with Executive Vice-President Han Jing highlighting its strong performance in tech financing. By the end of June, CCB's tech loan balance reached 5.15 trillion yuan, up 16.81 percent from the end of last year and accounting for more than 18 percent of total lending. New tech loans issued by the bank amounted to 741.7 billion yuan in the six-month period.

Bank of China also made tech finance a strategic priority. BOC President Zhang Hui said tech financing has become central to the bank's business strategy. By the end of June, BOC's tech loan balance reached 4.59 trillion yuan, more than 30 percent of its corporate loan portfolio. Its lending to tech-focused small and medium-sized enterprises and "specialized, refined, distinctive and innovative" firms led the market, with the cumulative supply of integrated services exceeding 780 billion yuan. The bank also strengthened its early-stage and small-ticket financing.

Joint-stock commercial lenders have followed suit. In the first half, tech loan balances at both Industrial Bank and Shanghai Pudong Development Bank surpassed 1 trillion yuan.

Fuzhou, Fujian province-based Industrial Bank has positioned tech finance as a flagship business. Its outstanding tech loans rose 14.73 percent from end-2024 to 1.11 trillion yuan by the end of June. In late August, its Xi'an, Shaanxi province branch co-hosted a financing matchmaking event with the Shaanxi Science and Technology Resource Coordination Center, connecting innovative firms with investors, law firms and other partners to build a broader tech financing ecosystem.

The event featured tailored products ranging from credit and equity financing to private banking and trust services, targeting the financing needs of tech-driven companies and wealth management of high-net-worth individuals linked to tech enterprises.

During project roadshows, companies showcased technologies, market prospects and funding plans. Industrial Bank, together with investment institutions and law firms, held one-on-one talks with enterprises to tackle financing hurdles, leading to several firms securing preliminary funding agreements with the bank and investors.

Analysts said banks face the twin tasks of providing vital funding to innovative companies while also safeguarding risk management and financial stability. To address this challenge, lenders are building specialized teams and service frameworks, refining credit assessment systems, and enhancing branch-level capacity to lend with greater confidence and precision.

In the first half, multiple banks strengthened organizational structures and established tailored credit service systems or business procedures for innovative companies. Bank of Communications has set up 87 tech-focused subbranches and created dedicated technology finance units in over 20 branches, while Agricultural Bank of China has rolled out differentiated credit policies for tech firms.

Many banks have also improved internal accountability and evaluation mechanisms. China Everbright Bank Vice-President Liu Yan said the bank developed a sci-tech innovation capability evaluation system to help branches more accurately assess the value of enterprises.

In the first half, the bank sharpened its focus on tech financing clients, using advanced data tools to integrate equity financing, supply chain and industry chain data. The initiative produced a list of more than 80,000 priority clients.

Currently, competition among banks in tech finance is intensifying, pushing lenders to enhance resource integration capabilities and meet the multitiered, life cycle financing needs of tech firms.

Recent interim reports highlight further initiatives. BOC is advancing its "tech partner" program to bring in diverse resources for innovation, while Bank of Communications has built a tiered tech financing ecosystem, launched a joint lab with the Torch High Technology Industry Development Center of the Ministry of Industry and Information Technology, and rolled out an initiative to broaden outreach to technology parks and innovative companies.

"Building tech finance ecosystems can integrate multiple resources and create a 'relay-style' financial services system, supporting the entire commercialization cycle of technological innovation," said Zeng Gang, chief expert and director of the Shanghai Institution for Finance & Development.