Lenders ordered to give green light to key national projects
Updated: 2015-08-21 20:15
(chinadaily.com.cn)
|
||||||||
China will encourage banking institutions to increase lending to major projects in key fields to support major national strategies, including the Belt and Road Initiative and the development of the Yangtze River Economic Belt.
Banking institutions are required to give credit support to major projects based on their market positioning, features and advantages, according to guidelines issued by the China Banking Regulatory Commission and the National Development and Reform Commission on Friday.
The guidelines encourage banks to innovate in terms of credit and guarantee, such as syndicated credit and emission rights pledged loans, as well as explore financing models like financial leasing and asset-backed securitization.
At the same time, banks should also ensure compliance of a major project and strictly control financial risks.
Han Zhifeng, deputy director-general of the NDRC’s Investment Department, said the central government hopes to push forward implementation of major national strategies by guiding credit funds to flow into relevant projects.
“China’s investment is facing relatively huge downward pressure under the current economic situation. In the first seven months of 2015, investment growth slowed down to 11.2 percent, compared with 13.9 percent at the beginning of this year. During the same period, the investment already in place grew even slower at a rate of 6.8 percent,” he said.
The NDRC will build a database for major projects of the country and provide updated information of these projects to financial institutions, making it more convenient and efficient for them to find the right lending targets.
Ye Yanfei, commissioner of the policy research department at the China Banking Regulatory Commission, said it was hard for commercial banks to give credit support to some major projects due to poor profitability of the projects.
“To handle this problem, the government should raise the prices of certain public goods, including agricultural water, and allow banks to develop auxiliary projects in addition to a major project to increase profit. Banks should also think of their own ways to increase profitability of these projects, such as using the land surrounding a water project to develop ecotourism,” Ye said.
- Chinese tea aims to go global on Belt and Road Initiative
- Bank of China boosts support for Belt and Road Initiative
- Intl investment fair to focus on Belt and Road
- Belt and Road brings China and Italy together for mutual benefits
- HK to play super-connector for Belt and Road Initiative
- Information, knowledge exchange needed under Belt and Road Initiative: Lithuanian expert
- Tsipras formally resigns, requesting snap general elections
- China-Russia drill not targeting 3rd party
- UK, France boost security
- China demands Japan face history after Abe's wife visits Yasukuni Shrine
- DPRK deploys more fire units to frontlines with ROK
- DPRK, ROK trade artillery, rocket fire at border
- Stars in their eyes: leaders in love
- A survival guide for singles on Chinese Valentine’s Day
- Beijing police publishes cartoon images of residents who tip off police
- Rare brown panda grows up in NW China
- Putin rides to bottom of Black Sea
- The changing looks of Beijing before V Day parade
- Nanjing displays ancient marriage, divorce certificates
- Top 10 Android app stores in China
Most Viewed
Economy on path of steady growth[1]|chinadaily.com.cn
Gay sex poses HIV threat for youth|Society|chinadaily.com.cn
Japan to release videos of Chinese activists|Asia-Pacific|chinadaily.com.cn
Gay sex blamed for rise in young students with HIV/AIDS|Society|chinadaily.com.cn
More young adults living with parents|Americas|chinadaily.com.cn
Magazine seeks Guangzhou expat families to tour Fujian[1]|chinadaily.com.cn
World's longest sightseeing escalator awaits you in Central China[4]|chinadaily.com.cn
Dai Ethnic Group[1]|chinadaily.com.cn
Minmetals unit offers sponge city solutions for rainfall usage|Business|chinadaily.com.cn
Licenses revoked in anti-porn campaign|Society|chinadaily.com.cn
Editor's Picks
Seventh China-US strategic dialogue |
Premier Li embarks on Latin America visit |
What do we know about AIIB |
Full coverage of Boao Forum for Asia |
Annual legislative and political advisory sessions |
Spring Festival trends reflect a changing China |
Today's Top News
Preparations shutter Forbidden City, other major tourist spots
President Xi Jinping calls for crews not to ease up
Chemical plants to be relocated in blast zone
Asian sprinters on track to make some big strides
Jon Bon Jovi sings in Mandarin for Chinese Valentine's Day
Tsipras formally resigns, requesting snap general elections
DPRK deploys more fire units to frontlines with ROK
Giant panda Mei Xiang at US zoo expected to give birth soon
US Weekly
Geared to go |
The place to be |