The largest policy bank in China announced on Friday (July 22) that it had provided 181.5 billion yuan (about U.S. $27 billion) in loans for urban development projects in the first half of the year and promised to keep up an accelerated pace of lending to finance infrastructure.
The largest development finance organization in the world is the China Development Bank (CDB), which was founded in 1994. The bank was first founded as a policy bank to support the funding of significant government development initiatives. The State Council of the People's Central Government has direct control over it.
CDB became a commercial bank in December 2008, however, its only owners were the Central Huijin Investment Corp. and the Ministry of Finance of China, both branches of the Chinese government. After the restructuring, CDB retained all of the assets, liabilities, and business of the policy bank, including RMB 300 billion in registered capital. China Development Bank provides financing for national projects such as infrastructure, basic industries, energy, and transportation.
According to reports, the China Development Bank (CDB) has provided loans totaling 650 million yuan to support the revival of an economic zone in Yantai, a city in eastern China, including the repair of industrial facilities.
Yantai's industrial areas last year also showed great vigor. The establishment of 40 innovation centers in the city's industrial zones has significantly accelerated Yantai's development. Industrial parks make up 5% of Yantai's total land area and are responsible for 50% of the city's GDP.
The city's commerce bureau will step up efforts this year to quicken reform and opening-up as well as generate new strengths for the growth of the business. In an effort to support the high-quality growth of cross-border e-commerce enterprises, the bureau also wants to expedite the creation of a national cross-border e-commerce demonstration zone in the city.
For the building of gas, power, and water pipelines in the eastern city of Chuzhou and the capital of Beijing, respectively, the CDB additionally separately provided loans of 280 million yuan and 98 million yuan.
Due to stringent COVID-19 control measures and a distressed real estate market, the second-largest economy in the world saw a significant slowdown in the second quarter. In order to strengthen the economy, policymakers have promised to increase infrastructure spending.
The government announced that policy banks had received 800 billion yuan in new credit quotas to fund infrastructure projects in a cabinet meeting in June.
