Shanghai Huarui Bank to back tech startups

Shanghai Huarui Bank, the first private bank in the city, is speeding up its lending to high-tech startups, said one of its senior executives.

"We aim to be a leading lender to Chinese firms engaged in innovative science and technology," said Zhu Tao, president of SHRB. "We will increase cooperation agreements with venture capital firms and cultivate startup clients for lending."

Usually, startups are unable to offer any substantial collateral to obtain loans from banks. So, SHRB will accept stock options in lieu of collateral to cover potential risks.