China’s Financial Authorities Stress Need for Banks to Serve Growth of Manufacturing and Industry

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The official news outlet for China’s financial regulators has stressed the need for the country’s banks to focus on servicing the growth of its manufacturing and industrial sectors.

“In order to drive the creation of a great manufacturing power, the banking sector is actively optimising measures to service the industrial economy,” wrote Lu Yuhang (陆宇航) in an opinion piece entitled “Helping to Raise the Core Competitiveness of Manufacturing – the Banking Sector is Comprehensively Protecting the Stable Operation of the Industrial Economy,” (助力提升制造业核心竞争力 银行业全方位护航工业经济平稳运行) that was published by Financial News on 4 April.

Lu cited data indicating that China’s biggest bank, Industrial and Commercial Bank of China (ICBC), saw its manufacturing sector loans balance surpass 2 trillion yuan at the end of 2021, after posting an increase of over 40% during the past three year period.

ICBC chair Chen Siqing (陈四清) said that during the 14th Five Year Plan the balance of the bank’s loans to the Chinese manufacturing sector is set to surpass 3 trillion yuan.

“The further optimisation of financial resource allocation will strengthen financial support for advanced manufacturing, hi-tech manufacturing and strategic emerging industries,” said Dong Ximiao (董希淼), an economic researcher from Fudan University to Financial News.

“We need especially strong support for financial demand in relation to the development of new technology, new materials, new equipment and new products, and raising the vigour of support for innovative tech companies that possess core competitiveness and resilient growth.”