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Banks Must Fund Local Projects
Summary:Banks are being required to provide loans for infrastructure and housing projects at the provincial and county level.

July 31, 2012
Translated by Tang Xiangyang

The China Securities Journal
has learned that some commercial banks have required their local branches to issue loans for provincial financing platforms and projects in the 100 counties officially recognized as the “most developed.”

An unnamed source revealed that the loans would focus on highway and railway construction projects, natural gas and other clean energy, and other projects concerning people’s livelihood.

The decision to support certain local projects echoes what Shang Fulin (尚福林), chairman of the China Securities Regulatory Commission, said recently. He called on banks to more effectively support the growth of the real economy and continue to support national key construction projects.

Rural infrastructure construction projects – especially in water conservation, grain production, and vegetable supply - will have easier access to bank loans. Meanwhile, public housing construction, subsidized housing and renovation of substandard homes - which are organized by provincial financing platforms - will also receive loans and be viewed as the top priority of banks.

China Securities Journal
previously reported that financial institutions including banks were required to help stabilize economic growth and prevent “half-completed” projects.

Links and Sources
China Securities Jounal: 部分银行明确支持地方平台贷款




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