CDB News

CDB Using Development Finance to Promote High-quality Development

Both the Amount and Ratio of Non-performing Loans Reduced in 2017

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Time:2018-01-29  Source:CDB

On January 29, CDB convened the 2018 Annual Working Conference in Beijing. Hu Huaibang, Chairman of CDB, delivered a speech at the conference, noting that CDB has been serving as a major financial force that unswervingly implements the decisions and arrangements of the CPC Central Committee, adopts new development concepts and serves the supply-side structural reform, supports regional coordinated development and key national strategies including the Belt and Road Initiative, and helps enhance China’s comprehensive national power and safeguard and improve people’s livelihood.

Zheng Zhijie, President of CDB, chaired the conference and reported on CDB’s operation and management. The conference was also attended by Executive Vice Presidents of CDB Wang Yongsheng, Zhou Qingyu, Zhang Xuguang, and Cai Dong, and Chief Compliance Officer Wang Yungui.

Hu Huaibang summarized CDB’s work in 2017 and reforms carried out after the conclusion of the 18th CPC National Congress. He noted that in 2017, under the strong leadership of the CPC Central Committee with Xi Jinping at its core, CDB made new achievements in a variety of work areas by focusing on learning, promoting and implementing the guidelines of the 19th CPC National Congress and following its general goal of seeking stable progress and serving the deepening of the supply-side structural reform. Concrete efforts were made to enhance the CPC discipline and the governance of CDB and promote reforms and development. As a result, CDB made solid progress in enhancing the Party building work, serving national strategies, deepening reforms, improving risk prevention and control, and promoting business development.

According to Hu Huaibang, CDB has opened a new chapter for development finance by fully implementing the strategic planning of the CPC Central Committee and adopting new development concepts in the past five years. Firstly, CDB followed the decisions and arrangements of the CPC Central Committee to the letter and leveraged the unique advantages and value of development finance in promoting China’s economic and social development. Secondly, focusing on deepening reforms as the key approach to its better governance, CDB developed and implemented the Three-Step Strategy to reduce long-term debt, improve the corporate holding structure and promote legislation for CDB. As a result, many long-standing problems were finally solved. Thirdly, putting a greater emphasis on risk prevention and control as well as on improving the quality and efficiency of its development, CDB made significant improvement in the level of lean management and sustainable development. Fourthly, CDB made further endeavor to enhance the CPC discipline and the governance of CDB, as a result of which the work styles of CPC members and all employees took on a new look. In the past five years, CDB learned valuable lessons from the practice of development finance operation to upgrade its functions in constantly serving national strategies, sticking to the business nature of development finance, and pursuing innovation-driven and market-oriented development, under the guidance of the Party building initiative.

Hu Huaibang stressed that CDB’s achievements and experience in reforms and development in the past five years, which could not have been possible without the guidance of the socialism with Chinese characteristics advocated by Xi Jinping for the new era, epitomized China’s historic progress and transformation in the financial sector after the conclusion of the 18th CPC National Congress. They have laid a solid foundation for CDB to continue serving national strategies in the new era.

According to Hu Huaibang, 2018 marks the beginning year of fully implementing the guidelines of the 19th CPC National Congress, the 40th anniversary of the launch of China’s Reform and Opening-up Policy, and a crucial year linking the past and future efforts to implement the 13th Five-Year Plan. The key to CDB’s success in 2018 is to maintain the general goal of seeking stable progress, more specifically, building a mutually reinforcing relationship between progress and stability. Firstly, CDB should leverage its unique advantages as a development bank to fulfill the following three major missions: (1) avoiding risks that threat the bottom line and preventing and addressing major risks; (2) taking targeted measures in poverty relief to ensure effective results; and (3) developing green finance to help improve the ecological environment. Secondly, CDB should support high-quality development of the real economy, with a focus on serving the deepening of the supply-side structural reform, the national undertaking of building China into an innovation-driven country, the implementation of the Rural Area Revitalization Strategy, the coordinated regional development, and the construction of the Belt and Road. Thirdly, CDB should commit itself to safeguarding and improving people’s livelihood in response to their needs for a better life by continuing to support affordable housing programs and reforms on the housing system, and by providing full support for the development of education, medical services and elderly care. Fourthly, CDB should develop innovative financing models, financial products and service mechanisms and provide more comprehensive financial services. Fifthly, CDB should continue to deepen reforms and improve the level of lean management by carrying out the policies on deepening reforms, improving its operational and management mechanisms, and promoting the reforms in its subsidiaries in a steady and progressive manner.

As required by Hu Huaibang, in 2018 CDB should further learn and implement the theories of Xi Jinping on the socialism with Chinese characteristics for the new era, enhance efforts in the political, ideological, organizational, work style, and discipline development within CPC organizations, and continue enhancing the CPC discipline and the governance of CDB, to pave the way for deepening reforms and serving national strategies. Firstly, political development should be put on top of the agenda to improve the political awareness of CPC members. CDB should always emphasize on organizing political activities to help CPC members learn and comply with the Constitution of Communist Party of China, with a view to creating a healthy political culture and an upright political environment. Secondly, CDB should persist in enhancing the Party building initiative through ideological education and promote the theories of Xi Jinping on the socialism with Chinese characteristics for the new era across CDB. It should continue to pursue the major political task of learning, promoting and implementing the guidelines of the 19th CPC National Congress and carrying out educational activities under the theme of “staying true to the mission” to gather strong forces for further development. Thirdly, CDB should stick to the principle that its executives are managed by the Party and build a team of highly qualified executives by cultivating their political and professional capacity and by implementing strict discipline and generous incentives. Fourthly, CDB should enhance the leadership of its grass-roots Party organizations to better play their role as Party strongholds. It should improve its political leadership to build CPC branches with stronger capacity and to promote strict CPC discipline at the grass-roots level. Fifthly, CDB should continue to rectify work styles, ensure compliance with strict discipline, conduct more enhanced supervision, and improve the accountability mechanism. It should take comprehensive measures to enhance discipline construction, make relentless efforts in building better work styles, give full play to inspection tours, and improve the prevention and control of corruption-related risks in major business operations.

Zheng Zhijie stated in his operation and management report that in 2017, CDB took concrete and effective measures in cutting excess capacity, destocking, deleveraging, reducing costs and filling gaps. As of the end of 2017, CDB’s total assets had reached RMB 15.67 trillion. The amount and ratio of non-performing loans were both reduced with the latter controlled below 1% for 51 consecutive quarters. To support infrastructure construction, basic industries and pillar industries, CDB made enhanced efforts in developing and evaluating 165 major projects and granted RMB 129.4 billion, 96.7 billion and 313.3 billion in loans respectively for China Railway, water conservancy and new urbanization. To cultivate new drivers of economic growth, CDB granted RMB 344.3 billion, 107.8 billion and 327.0 billion in loans respectively for strategically emerging industries, the integrated circuit industry, and environmental protection, energy saving and emission reduction, and made a loan commitment of nearly RMB 100 billion to support the construction of national reserved forest bases. CDB also granted another RMB 444.5 billion in loans for poverty relief with an outstanding loan balance of RMB 1.11 trillion covering 983 national and provincial-level poverty-stricken counties. To support the construction of affordable housing, as of the end of 2017, CDB granted RMB 3.4 trillion in loans for urban renewal, which benefited over 20 million households living in shanty areas. In terms of international business, CDB granted USD 17.6 billion loans for the countries along the Belt and Road and fulfilled a special loan commitment equivalent to RMB 99.1 billion to support the construction of the Belt and Road. As of the end of 2017, CDB reported USD 332.7 billion in outstanding loans for international business and remained as the largest Chinese institution providing foreign currency-denominated loans.

As required by Zheng Zhijie, in the future, CDB should further strengthen its strong sense of the political responsibility and historical mission to serve national strategies, and make coordinated efforts to provide better services, pursue the three major missions, and complete various key tasks such as ensuring steady growth, promoting reforms, facilitating structural adjustment, improving people’s livelihood, and preventing risks. It should also enhance operation and management and promote a work style of valuing time and attaining goals in the shortest time possible to create a good start for fully implementing the guidelines of the 19th CPC National Congress. Firstly, CDB should enhance forward-looking research and planning and firmly hold the initiative on development. Secondly, CDB should help promote high-quality development and the construction of a modernized economic system. Thirdly, CDB should provide support for filling gaps to safeguard and improve people’s livelihood. Fourthly, CDB should vigorously promote the development of its international business to serve a more advanced and open economic development model. Fifthly, CDB should intensify its efforts in raising funds. Sixthly, CDB should enhance risk management and ensure stable asset quality. Seventhly, CDB should strengthen lean management and the integration of various business operations.

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