"Ordinary banks need mortgages for issuing loans. In particular, as high-tech companies, we have to put lots of investment into our initial stage research and development. So we have little collateral for additional financing. But eventually the loan support provided by ICBC helped us to set up our R&D and data center." Xu Nianlong said.

Xu Nianlong finally borrowed 2 million yuan from ICBC's Guanggu high-tech park branch.

The branch was established to support the growth of Wuhan's high-tech companies. The head of the bank says its headquarters have given them more freedom to make loans for innovation-driven, high tech, SMEs.

"High-tech entrepreneurs have proprietary technologies. So we're working with the local government to check their R&D potential and credit history. This way we can issue loans to qualified lenders." Zou Guohua, Manager of Wuhan Guangu Branch, ICBC said.

The branch have issued loans to more than 45 small high-tech firms in 11 months. Its outstanding loan value to this sector reached 200 billion yuan.

Over in eastern Zhejiang province, 700 kilometers away from Wuhan. Similar innovations are also enjoyed by local high-tech firms. Local banks have cut red-tape in order to streamline the lending process in addition to extending loan maturities.

"We borrowed 1.9 million yuan last June. This loan was due last month. But we're using the "annual review" services now, so that we can extend the maturity to next June. That solved our capital shortage problems." Dai Hongbo, General Manager of Xquant Co said.

"Qualfied lenders can extend matured loans without paying the principal. It's welcomed by many high-tech SMEs. The local banking regulator says it's set to unveil more measures to carry out the central government's requirement of "tapping idle capital". Xie Nazhi, General Manager of SME Dept, Hangzhou Branch, Huaxia Bank said.

"We now encourage banks to be more innovative on loan repayment. For example, we suggest banks to adjust the repayment date of SMEs according to their production cycles. We believe it's an effective way to revitalize the stocks of capital." Bao Zuming, Vice Director of Zhejiang Office of China Banking Regulatory Commission said.

Up until the end of June, the outstanding loans issued to SMEs accounted for 39 percent of this local bank's total loans. And a rising portion of it were issued to high-tech SMEs in the region.