The People's Bank of China, the National Development and Reform Commission, and the Ministry of Finance recently jointly issued a notice on expanding loans for scientific and technological innovation and transformation to further support equipment updates. The Notice emphasizes that the scope of loan support for technological transformation and equipment renewal will be expanded to 14 fields including electronic information, artificial intelligence, facility agriculture, and consumer commercial facilities. It is understood that technology innovation and technological transformation refinancing is a structural monetary policy tool established by the People's Bank of China in conjunction with relevant departments in April 2024, aimed at encouraging financial institutions to increase credit support for related fields and reduce financing costs by providing low-cost refinancing funds to financial institutions. Pang Ming, a specially appointed senior researcher at the National Finance and Development Laboratory, believes that policies provide institutional financial solutions for technology companies' research and development and industrial intelligence upgrading by expanding the coverage and upgrading rules of financial instruments. The Notice specifies that the scope of support for technological innovation and equipment updates will be expanded, and private small and medium-sized enterprises with high levels of research and development investment will be included in the field of refinancing policy support. Traditional bank credit heavily relies on real estate mortgages. This policy explicitly uses' research and development investment 'as the core admission indicator to convert the innovation potential of enterprises into credit limits. Through the low-cost fund of refinancing, it directly alleviates the cash flow risk of high research and development, light asset private enterprises during the technological breakthrough period, and provides continuous and stable protection for innovation activities, "said Pang Ming. According to the notice, relevant departments will improve the quality and efficiency of loan services, focus on providing financial services for enterprises to purchase artificial intelligence devices and software services, and promote the development of "artificial intelligence+industry". Optimize the issuance and management of re loans, and improve the efficiency of policy implementation. (Looking into the New Era)