The city landscape of Liangjiang New Area in Chongqing. [Photo/liangjiang.gov.cn]

The State Council recently issued the third batch of outstanding practical cases for its service trade innovative development trial. Three cases were selected from Southwest China's Chongqing municipality, among which is the cross-border sci-tech loan case from Liangjiang New Area.

This case features the first assisted cross-border financing loan in China for high-tech enterprises. Banks involved can act in the stead of high-tech firms and apply to overseas banks for loans, making it easier for these firms to obtain capital, while also lowering their financing costs to a great extent.

By the end of 2022, 12 banks in the new area had been able to apply for overseas loans, and had collected about 56 million yuan ($8.13 million) in loans for six local service traders.

The maximum loan volume of this type is 25 million yuan, with the agreement that the loan will be paid in full within five years. This kind of loan does not need any guarantees, and the risk for breach of the contract is equally shared by the government and the bank involved.

Being among the first group of trials for service trade innovative development, Liangjiang New Area has been acting boldly to innovate its industries, focusing on finance, healthcare, logistics, digital trade and other key fields. Phased progress has been achieved during this process, with two pieces of experience and five cases in the new area having been recognized and promoted nationally.