China central bank to set up $70 billion tech re-lending programme

China's central bank will set up a 500 billion yuan ($70 billion) re-lending programme to support the country's science and technology sectors, according to a statement released on Sunday. The programme will offer loans via 21 banks to small and midsize technology companies at an interest rate of 1.75 per cent. The one-year loans can be extended twice, for up to a year each time, the statement said.

China's policymakers look to boost liquidity and increase confidence in the world's second-biggest economy amid headwinds from a property crisis and frictions with major trading partners.