First Loan Under CDB’s Capital Cooperation Program for Manufacturers Delivered

Recently, CDB granted a 10 million yuan loan to Zhejiang Junlang Electric Co., Ltd., marking the delivery of the first loan under CDB’s Capital Cooperation Program for Manufacturers. The loan will provide medium and long-term, low-interest-rate financing to support the production and operation of the company which specializes in manufacturing of electrical components and equipment sets.

It is reported that the program is part of the effort by CDB to implement the decisions and arrangements of the CPC Central Committee and the State Council on offering convenient and low-cost financing to micro, small and medium-sized enterprises (MSMEs). As an innovative financial service model designed by CDB to support MSMEs with development finance, the program aims to provide targeted, low-interest, and easy-to-use loans for batches of promising manufacturing MSMEs through win-win cooperation between banks, local governments, and companies. CDB has so far piloted the program in cities including Wenzhou, Hangzhou, Ningbo, Qingdao, Dalian, Changsha, Beijing, Dongguan, Foshan, and Xiamen.

Specifically, CDB’s Capital Cooperation Program for Manufacturers is jointly launched with local governments and member companies with a joint pool of funds proportionally contributed by the three parties. Based on the principles of cooperative finance and risk sharing, the local governments will draw on their advantages in organizing and coordinating the program, member companies will play their roles in democratic management, and CDB will serve as a loan provider. The three parties will share risks and join efforts to promote the development of manufacturing MSMEs.

Junlang Electric Co., Ltd. is one of the first batch of 16 member companies representing manufacturers in Leqing of Wenzhou City. These companies have received from CDB a total of 400 million yuan in medium and long-term liquidity loans. These manufacturers are all specialized in business areas ranging from high, medium, and low-voltage electrical equipment, large machinery, air energy equipment, complementary products for automatic equipment, and semiconductor packaging. The participating companies share the view that the access to low-cost unsecured loans under this program will provide timely and effective support for their production expansion and take their business growth to a higher level.