Photo
      Policy Briefing
      Governmental Regulations
      Business News
      Auto
      Finance
      Telecom
      Foreign Trade
      Economy of China
      Foreign Investment
      Development Zones
 Investment FAQ
      16. What are the rules for foreign shipping companies to set up their solely owned companies in China?
      17. What are the conditions for establishing Chinese-foreign equity and contractual joint venture medical institutions within Chinese territory?
      18. What are the rules for establishing foreign-funded commercial enterprises in China? (1)
      18. What are the rules for establishing foreign-funded commercial enterprises in China? (2)
      19. What are the regulations concerning taxes for enterprises with foreign investment and foreign enterprises engaged in consultation business?
      20. Are foreign businesses allowed to invest in cinemas? What are the relevant regulations?
More Bank Loans to Help Develop West

2004-11-19 09:58:13

 

  A top banker said more financial support will be given to western China to spur key economic sectors in the region.
  
  
  
  Additional loans granted to the region are expected to bolster industries such as hydraulic power, natural gas and electrical generation, which can help provide low cost energy, reduce pollution and help economic output, said Wu Xiaoling, deputy governor of the People`s Bank of China.
  
  
  
  "We are convinced that loan growth and favorable policies will help the region solve its financing difficulties," she said during an address to the Western Forum of China.
  
  
  
  But favorable policies for western enterprises do not mean banks must provide them low interest rates, Wu said, noting that market-oriented approaches should be taken as financial reforms deepen.
  
  
  
  Instead, banks should set interest rates through normal risk-estimating mechanisms, while government can offer fiscal allowances to those enterprises that are engaged in high-risk but profitable sectors.
  
  
  
  Wu said western China has acquired considerable support from the central government since the "Go West" campaign was launched in 1999.
  
  
  
  According to People`s Bank of China, western regions have obtained loans totaling 2.86 trillion yuan (US$344.6 billion) through the end of September.
  
  
  
  The balance of long- and medium-term loans in western China stood at 1.4 trillion yuan (US$168.7 billion), accounting for 19.3 percent of the country`s total.
  
  
  
  Yao Zhongmin, China Development Bank`s deputy president, echoed Wu by saying the bank will further increase loans to projects in infrastructure and natural resources exploitation.
  
  
  
  Meanwhile more private funds will come to the west as project bonds are encouraged in public projects and energy industries.
  
  
  
  "Some infrastructure proposals will be chosen as pilot projects to attract more investment," Wu said.
  
  
  
  However some enterprises, particularly small and medium-sized enterprises in these regions, still encounter difficulties in receiving loans from local banks.
  
  
  
  Zhong Dingxu, general manager of Sichuan`s Deyue High-tech Seed Company, told China Daily: "I prefer to seek investments from business partners rather than applying for loans from banks because the procedure is very complicated. That`s even though my company is involved in the sectors that the government is encouraging."
  
  
  
  Experts suggest that western regions learn from foreign countries` experiences so as to simplify procedures for obtaining loans.
  
  
  
  (China Daily November 19, 2004)
  
  


 Font Large Medium Small
 Recommend to friends
 View comments on this article
 Most E-Mailed Articles(Most Popular)

Related Articles

Untitled Document
   Recommendation
A wild weekend in Inner Mongolia
Next to Tibet, Inner Mongolia is one of China's most extraordinary places. You'll be fascinated by the mystique of its stunning grasslands, the Gobi desert, the energetic Naadam festival and the Mongolian way of li...
Giant octopus back to the ocean
It's real people and it's a COS play, let's take a look...
Sex And the Chinese Cities

Remember the winner of the 1960 Best Picture Oscar The Apartment? Director Billy Wilder's bittersweet...