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ICBC Supports the Revitalization of Old Industrial Bases in Northeast China
 

ICBC has recently held a symposium on support for economic transformation in Northeast China. Mr. Yi Huiman, Chairman of Board of Directors of ICBC, said that ICBC is fully implementing the Several Opinions of the CCCPC and State Council on Comprehensively Revitalizing the Old Industrial Bases in the Northeast and Other Parts of China by boosting regional economic transformation, improving financial services in key areas such as supply-side structural reform, Go Global, Belt and Road initiative, Made in China 2025. In addition, Mr. Yi Huiman asked ICBC’s institutions in the northeast region to take active part in regional economic transformation, accelerate financial business innovation and operation restructuring, and deepen system reforms to enhance capabilities in sustainable development and serving real economy.

Mr. Yi Huiman pointed out that supporting northeast’s economic revitalization is not only a specific reflection of ICBC’s commitment to national policies and social responsibilities as a state-owned bank, but also an inevitable choice to promote ICBC’s development in Northeast China. In recent years, ICBC has highly valued the revitalization of northeast's old industrial bases and regional coordinated economic development by providing financing support in line with the principle of business sustainability. By the end of this June, the balance of loans issued by ICBC to Northeast China amounted to RMB 706.8 billion, ranking No. 1 in the banking industry. Credit asset quality remained solid, with an NPL rate of 1.4%, well below the bank average. In supporting the transformation of northeast’s old industrial bases, ICBC has concentrated on the following three aspects:

Firstly, the supply-side structural reform of service is prioritized in supporting the revitalization of northeast’s old industrial bases. ICBC’s institutions in Northeast China have actively implemented the incremental credit and outstanding credit re-lending management mechanism, boosted restructuring of overcapacity sectors and supported faster growth of strategic sectors. ICBC Liaoning Branch has fully leveraged traditional advantages in northeast’s old industrial bases, preferably supported high-end manufacturers (such as NC machine tool, robot and aviation & aerospace) with the center on “Made in China 2025”, helped traditional equipment manufacturers to apply new technologies, materials and processes as early as possible to improve products’ technical level and additional value, and carried out comprehensive cooperation with many large-sized advanced manufacturers (such as SMTCL, Zhongwang Group, Shenyang Blower Works Group and Shenyang Yuanda Aluminum Industry Engineering Co., Ltd.). Jilin Branch has served local industrial structural optimization and adjustment by supporting cultural tourism, and provided financing support for high-quality tourism resources such as “Changbaishan Mountain”, “Songhua Lake” and “Jingyue Pond”. Heilongjiang Branch has mainly issues loans (RMB120 billion) to modern agriculture.

Secondly, private economy and SMEs in Northeast China are the key targets of support. Innovative credit products have continued to be developed based on regional resource endowments. In Liaoning Province, accounts receivable under medical insurance, as well as “medical insurance loan” and “procurement loan” related to receivables under centralized drug procurement of public hospitals have been designed. The “ginseng antler loan” business is launched in which guarantee and loans provided by the market manager are used to merchants in the northeast ginseng antler town market for daily operation. In Jilin Province, the innovative “little eagle loan” has been designed. Based on local characteristics, ICBC selected the cultivation integration project with an annual delivery of 4 million live hogs by Chuying Agro-Pastoral Group, providing loans worth RMB 605 million to cultivation households. As small agricultural enterprises lack collateral and capital, ICBC has provided loans benefiting agriculture, rural areas and farmers..Targeted at agricultural companies and new-type agricultural operation entities, ICBC has developed business areas including land operation right mortgage, direct subsidies to farming machineries and cooperation with guarantors, which correspond to three SME loan products, i.e., land loan, farming machinery loan and agricultural guaranteed loan, respectively, basically covering the most typical areas of modern agriculture development in Jilin Province.

Thirdly, ICBC has supported enterprises going global from Northeast China and conducted international production capacity cooperation by leveraging its strengths in internationalization and integration. ICBC has provided domestic and overseas guarantees worth RMB 11.1 billion for the bidding and contract performance of Harbin Electric Corporation and Sida Railway Equipment Company in Heilongjiang. It has also provided export buyer’s credit worth USD 230 million for the South Asian Project implemented by Harbin Electric Corporation, in addition to USD 670 million of loans for its projects in Africa and South Asia. Last December, ICBC signed the investment and financing intention agreement on Dubai Hassyan Electricity Project with Harbin Electric International Company Limited and ACWAPower. The project’s investment and financing totaled USD 3.3 billion and 2.5 billion, respectively. It is Heilongjiang’s largest and China’s third largest “Go Global” project, marking historical breakthrough by a Chinese company using model of the investment/financing and general contracting to enter the Gulf’s high-end electric market. ICBC has also provided financing leasing support for HAIG on five business airplanes through its wholly-owned subsidiary – ICBC Leasing.


(2016-11-15)
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