Releasing the Suggestions on Serving the Construction of West Coast of the Taiwan Straits
On May 13, the first anniversary of the State Council's release of the Suggestions on Supporting Fujian Province to Speed up the Construction of the Economic Zone in West Coast of the Taiwan Straits, the Industrial Bank held a news briefing in Fuzhou and officially publicized the Suggestions on Further Blending in and Serving West Straits Construction. According to its announcement, the Industrial Bank will implement a Multi-Billion Program in the West Straits and focus on advancing Six Major Projects. Acting as the main force in economic construction of the region, it will comprehensively integrate itself with and work hard for the leap-frog development of the West Straits region.
The Industrial Bank indicated that, as the strategic vision of constructing the West Straits Economic Zone has turned into a decision by the Central Government and a state strategy, the West Straits will, more prominently, play a strategic role in the national development layout. As the only state-level listed bank based in the West Straits region, the Industrial Bank will continue to support the construction of the West Straits Economic Zone and make this its central task. By seizing the historical opportunity and relying on the advantages of nationwide operation, it will integrate various kinds of resources to cater to and propel Fujian's development and construction of the West Straits region comprehensively.
In the next few years, the Industrial Bank will plan to invest no less than 100 billion in credit funds into West Straits construction, actively advancing its Six Major Projects and supporting Pingtan Island Integrated Experimental Zone, West Straits Key Construction Projects, low-carbon economy, quality small businesses, livelihood projects and Taiwan-funded enterprises.
“Pingtan Fast Road” Project, an Intense Involvement in the Construction of Pingtan Integrated Experimental Zone
According to the strategic cooperation agreement signed with the administrative committee of Pingtan Integrated Experimental Zone on April 27, the Industrial Bank will settle the scale of specialized credits and provide the key credit support by centering on the hundred-billion infrastructure construction and social and economic development program of Pingtan Integrated Experimental Zone. Priority support will be given to infrastructure programs concerning land reserve, roads, bridges, water, electricity and railway, low-carbon and cyclic economy in the Zone. It will take initiatives in business innovation in areas such as financial lease, trust financing, government bonds, and syndicated loans. Within this year, the Pingtan Branch of the Industrial Bank shall be established, which will be granted with greater authorized rights, and will be especially responsible for the program development and credit management of Pingtan Integrated Experimental Zone, and will closely follow and serve the project construction in the Zone. In line with the policy of “priority for pioneering programs”, the Industrial Bank will establish a fast and convenient channel to serve the Zone, so that the demands for financial services in the construction of the Pingtan Integrated Experimental Zone will be met timely and efficiently.
“Leading Partnership” Project, Serving West Straits Key Projects and Key Enterprises
For the 130 key construction projects in Fujian province, including Fuzhou-Xiamen Railway, Fujian Main Grid Project and Rail Transmit, the Industrial Bank will fully meet the follow-up withdrawal demands of the 47.1 billion credit approved. In addition, 50 billion in credit funds will be raised for 228 key construction projects focusing on Hefei-Fuzhou Railway (Fujian Section), Quanzhou Port Taiwan Investment Zone, Quanzhou Bay Cross-Ocean Channel, and Fujian base for equipment manufacturing industry, and in the next few years, a long-term, sustained investment in West Straits construction will take shape. Financial services will be innovated, and flexible financial instruments and financing mode will be put to use in an aim to meet the demands for integrated services in key construction projects, including money mobilization, payment and settlement, treasury management and capital maintenance and appreciation. In order to support head-to-head cooperation with large and quality enterprises in Fujian, the Industrial Bank, led by the head office, will put forward an overall credit program and upgrade service level. By bringing into full play the technical and resource advantages that the Industrial Bank (China's first Equator Bank and the first to offer loans for energy saving and emission reduction) has gained, it will increase the energy conservation loans in Fujian, low-carbon finance and other project finances conforming to the Equator Principles. At least 5 billion in credit investments will be arranged for energy conservation in the West Straits region, primarily supporting technical upgrade in traditional industries to establish a green financial brand in West Straits.
“Corridor Construction” Project, Coordinating and Propelling the Link between Fujian Construction Funds and Funds from the Enterprises Owned by the Central Government
Relying on the advantage of bank-scale marketing services, the Industrial Bank will actively facilitate the linkage between state investment funds, or the funds for project construction of central-government-owned enterprises and Fujian project via the channels of its own. The Industrial Bank will primarily increase credit investment in livelihood projects, such as security housing and water and soil management, and infrastructure construction in the West Straits, such as the construction of the Pingtan Experimental Zone, petrifaction refinery, modern steel, port logistics and railway, so that it can effectively serve the synchronized linkage of funds of central-government owned enterprises and Fujian enterprises. At present, the Industrial Bank is engaged in cooperation with 20 construction projects subordinate to central-government owned enterprises.
“Sesame Flower” Project, Boosting Rapid Growth of Small Enterprises in West Straits
The Industrial Bank will speed up the establishment of specialized institutions for small and medium sized enterprises, and small enterprise centers are scheduled to be established in all branches in Fujian within the year. It will continue to enrich, improve and optimize the combination of product packages under the “Golden Sesame Flower” brand for SME products. The SME credit balance is targeted at 60 billion in 2010, and on that basis, a greater improvement is expected to be achieved, which will sustain a leading position in Fujian finance for SMEs in terms of credit increase and loan balance. The Industrial Bank will actively promote business cooperation with relevant institutions in financing SME for industrial upgrade and independent innovation, and make joint efforts to serve SME clusters in the regions in the aforementioned regards. Also, suitable risk sharing mechanisms will be explored, and cooperation with Fujian SME guarantee and re-guarantee institutes will be amplified in an aim to assist SMEs resolve guarantee difficulties.
“People-Benefiting” Project, an Initiative Undertaking in Livelihood Projects
The Industrial Bank, taking advantage of the pilot project of integrated urbanization reform and on the basis of the existing 3.3 billion credit, is planning additional loan issuance of 10 billion in order to advance credit support in livelihood projects, including the reformation of old urban areas, small town construction, and urban infrastructure projects. With these credit supports, more jobs will be created; and with active involvement in such measures as the introduction of Fujian social credit cards, the Industrial Bank is taking the initiative in serving livelihood projects.
“West Straits Root” Project, Assisting Taiwan-funded Enterprises to Take Root in Prosperous West Straits
In line with the comprehensive business cooperation agreement with Taiwanese investment and enterprises associations in Fujian on April 28, the Industrial Bank will allocate at least 5 billion in credit to increase its investment in Taiwan-funded enterprises and Taiwanese merchants. Through in-depth cooperation with Taiwanese investment and enterprise associations in Fujian regarding program investment, loan and financing, trade settlement, credit investment, and client recommendation, the Industrial Bank will provide major support to Taiwanese investment enterprises engaged in electronics, information, petrochemicals, machinery and automobiles. Strong Taiwanese enterprises conforming to the Industrial Bank's policies on credit extension will be granted with certain preferences in regard to loan interest rate, settlement tariff and the rate of banking exchange.