Five Big State-owned Banks Provide $64 Billion in Special Financing to Hubei Province Following COVID-19 Outbreak
Five of China’s leading state-owned banks are stepping up lending to the province of Hubei where the COVID-19 pandemic first emerged.
On 8 April the Chinese government lifted its lockdown on Hubei-province capital of Wuhan, signalling the beginning of efforts to restore the regional economy following the spread of COVID-19.
China’s big state-owned banks are playing a key role in these efforts, with five of them providing special financing to plans to restore the Hubei economy worth at least 455 billion yuan (approx. USD$64.37 billion) in total.
This amount includes:
- China Construction Bank: 120 billion.
- China Development Bank: 100 billion yuan.
- Agricultural Development Bank: 100 billion yuan.
- Industrial and Commercial Bank of China: 100 billion yuan.
- Export and Import Bank of China: 35 billion yuan.
21st Century Business Herald estimates that nine of the leading Chinese state-owned banks (the three policy banks and the big six state-owned banks) could collectively be directing as much as 819 billion yuan in special financing to Hubei province to help it cover from the impacts of COVID-19.
This amount is in excess of the full-year new lending amount for Hubei province in 2019, which was 632.3 billion yuan according to figures from financial data provider Wind.