China’s largest strategic bank disbursed $27 billion in infrastructure stimulus loans
BEIJING (Reuters) – China’s biggest political bank said on Friday it had disbursed 181.5 billion yuan ($27 billion) in loans for urban development projects in the first half and pledged to maintain an accelerated pace of lending to finance infrastructure.
The China Development Bank (CDB) has provided 650 million yuan in loans to finance the renewal of an economic zone in the eastern city of Yantai, including the renovation of industrial facilities, it said.
The CDB also separately provided loans of 280 million yuan and 98 million yuan for the construction of gas, electricity and water pipes in the eastern city of Chuzhou and the capital of Beijing, respectively.
The world’s second-largest economy slowed sharply in the second quarter, depressed by strict COVID-19 containment measures and a struggling real estate market. Policymakers pledged to increase infrastructure spending to revive the economy.
At a cabinet meeting in June, authorities said they had given political banks 800 billion yuan in new credit allowances to fund infrastructure projects.
($1 = 6.7657 Chinese yuan renminbi)
(Reporting by Liangping Gao and Ryan Woo; Editing by Shri Navaratnam)
Copyright 2022 Thomson Reuters.