On July 24, 2020, CDB held a conference in Beijing to analyze its business situation in the first half of the year. At the conference, CDB reviewed its work in the previous six months and set major tasks for the rest of the year by following the decisions and arrangements of the CPC Central Committee and the State Council. Zhao Huan, Chairman of CDB, addressed the conference and Ouyang Weimin, President of CDB, delivered a business report. Zhou Qingyu, Executive Vice President of CDB, attended the conference.
It was pointed out at the conference that in the first half of 2020, under the strong leadership of the CPC Central Committee with Xi Jinping at its core, while implementing faithfully the decisions and arrangements of the CPC Central Committee and the State Council and strengthening the leadership of the Party, CDB made vigorous efforts to leverage the role of development finance in counter-cyclical adjustment, with a view to striking a balance between supporting epidemic prevention and control and promoting economic and social development, ensuring stability on six fronts (the “Six Stabilities”), and maintaining security in six key areas (the “Six Securities”). Firstly, CDB offered substantial amounts of financing. From January to June 2020, CDB provided a total of 1.87 trillion yuan in RMB and foreign-currency loans and reported an increase of 682.4 billion yuan in the outstanding volume of RMB loans delivered to domestic borrowers. Secondly, CDB loans served clear purposes. The bank provided (1) 29.5 billion yuan in emergency loans for epidemic prevention and control; (2) 438.5 billion yuan in loans to support resumption of work and production and attainment of production goals; (3) 1.03 trillion yuan in loans for new infrastructure and urbanization initiatives and major projects; (4) 147.3 billion yuan in medium and long-term loans for the manufacturing industry; (5) 273.4 billion yuan in loans for the comprehensive protection and green development of the Yangtze River; (6) 196.1 billion yuan in poverty relief loans; (7) 93 billion yuan in relent loans for micro and small-sized enterprises, with an increase of more than 90% in the outstanding volume; and (8) 39.6 billion USD in foreign-currency loans for companies playing a key role in stabilizing foreign trade and foreign investment and for major Belt and Road projects. Thirdly, CDB adopted a pragmatic approach to provide financial support. CDB weighted its loans and loan policies toward Hubei Province, offered financial solutions to challenges facing the aviation industry and the road transport industry, and released favorable policies on loan extensions and renewals. These pragmatic measures were to overcome the difficulties experienced in areas, industries, and clients severely affected by the epidemic. Fourthly, CDB applied lower interest rates on loans. It provided preferential interest rates for six types of special loans. The interest rates of the loans CDB granted in the previous six months were significantly lower than last year. CDB also improved its risk management system and related mechanisms to strengthen risk control in key areas and promoted the disposal of non-performing loans and high-risk loans, with a view to maintaining effective bottom-line control of risks.
At the conference, CDB specified a range of requirements for its future work. Firstly, CDB should follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and carry out the decisions and arrangements of the CPC Central Committee and the State Council, while taking pragmatic and targeted measures to support the “Six Stabilities” and “Six Securities.” Secondly, CDB should focus on its main responsibilities and business areas, make vigorous efforts to serve high-quality economic development, and combat unproductive arbitrage using borrowed funds. It should make good use of policy tools, such as special loans for resumption of work and production and attainment of production goals, relent loans, special manufacturing loans, and a package of supportive policies for Hubei Province, with a view to promoting the recovery and development of the real economy. Thirdly, CDB should make continuous and targeted efforts in areas of strategic importance. It should provide vigorous support for new infrastructure and urbanization initiatives and major projects, advance manufacturing upgrades and the development of strategic emerging industries, promote the implementation of major regional development strategies, and support high-quality cooperation on building the Belt and Road. Fourthly, CDB should maintain strong support for areas of weakness. It should help to stabilize employment, safeguard living standards, and win the battle against poverty. While implementing favorable policies for companies and strengthening financial support for market participants, CDB should provide vigorous support for renovation of shabby residential quarters in urban areas and serve the development of such industries as pollution treatment, healthcare, eldercare, childcare, and logistics. Fifthly, CDB should deepen reform and promote innovation. It should improve its governance capability and service level and continuously explore innovative financing models. Sixthly, CDB should make determined and intensive efforts to build an effective mechanism for risk prevention and control. To win the battle of preventing and mitigating financial risks, CDB should promote the disposal of non-performing loans and high-risk loans, fill management gaps, and fix institutional loopholes.
It was stressed at the conference that CDB should study and implement the spirit of the important speech delivered by General Secretary Xi Jinping at the 21st Collective Learning of the CPC Central Political Bureau, comply with the overarching requirement for Party building and the organizational principles of the Party in a new era, and continue to improve Party building across CDB. To be specific, CDB should (1) adhere to the Party’s overall leadership over development finance and uphold Xi Jinping’s position as the core of the CPC Central Committee and the whole Party, as well as the authority and centralized, unified leadership of the CPC Central Committee (the “Two Upholds”); (2) raise awareness about CDB’s role as a political body and promote Party building across the bank through Party building within the head office; (3) build a team of high-caliber cadres and encourage cadres to take on responsibilities; (4) eliminate the deleterious effects of Hu Huaibang’s corruption and strengthen efforts to maintain integrity and strict discipline and to combat corruption; and (5) deepen political inspection tours and leverage the key role of such tours in uncovering problems.
At the conference, CDB also made work arrangements to support epidemic prevention and control as well as flood control and disaster relief.
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