As of the end of June 2020, CDB had granted a total of 277.7 billion yuan in manufacturing loans, with a year-on-year growth of 45% and an outstanding volume of 864.8 billion yuan. These loans are provided to support the transformation and upgrade of the manufacturing industry.
In the beginning of 2020, CDB decided to prioritize support for high-quality development of China’s manufacturing industry. Since then, it has enhanced coordination and cooperation with ministries and commissions, including the National Development and Reform Commission and the Ministry of Industry and Information Technology. As a result, a 250 billion yuan special loan facility and a 50 billion yuan liquidity loan facility have been set up to provide efficient and low-cost financial support for backbone companies and major small and medium-sized enterprises on the industry chain. The ultimate goal is to promote high-quality development of the manufacturing industry. CDB Beijing Branch provided BAIC BJEV with 1 billion yuan in a special manufacturing loan and 800 million yuan in a special liquidity loan for resumption of work and production, with a view to helping the company strengthen technological R&D, boost product upgrading, and sharpen core competencies. CDB Guangdong Branch approved a 1.1 billion yuan loan to help Mingyang New Energy push forward with its two wind turbine projects in Yangjiang, one about manufacturing of a complete wind turbine and the other about blade manufacturing. The loan is part of CDB’s effort to promote clean energy development and industrial transformation and upgrade in Guangdong Province. So far, 250 million yuan have been granted to the company.
It is reported that CDB is also driving the implementation of its Capital Cooperation Program for Manufacturers. According to the program, batch development and cooperative finance based on cooperation between banks, local governments, and companies will be adopted to support the development of the manufacturing industry. The program is expected to ease the burden on local governments acting as a guarantor, satisfy the risk management needs of banks, and promote cooperative development among manufacturers.
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