Banks in China's Henan pledge more support for local economy
- Top 10 News for 9/19 - 9/23: Twitter on the Auction Block; Allergan Bolsters NASH Effort; Microsoft Returns Value
- Wall Street falls as energy lags; shares post gains on week
- Rumored Forever, Twitter (TWTR) May Have Finally Put the 'For Sale' Sign Up
- Facebook (FB) Shares Under Pressure on Reports Video Ad Metrics Were Artificially Inflated
- Brookfield Infrastructure (BIP)-Led Consortium to Take Controlling Stake in Petrobras' (PBR) NTS for $5.2B
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
SHANGHAI (Reuters) - Banks in the central Chinese province of Henan have pledged to extend more than 450 billion yuan ($67.47 billion) in new loans to "key sectors" this year to aid their restructuring efforts, the local regulator said in a notice published on Sunday.
"The banking sector plays an important role in the real economy amid current difficulties and downward economic pressures, and it has become an urgent requirement to increase funding, optimize financial services and promote the healthy and stable development of the economy," the Henan branch of the China Banking Regulatory Bureau said.
The announcement comes as Henan province plans to shut 62.54 million tonnes of coal and 2.4 million tonnes of crude steel capacity over the 2016-2018 period as part of its contribution to nationwide efforts to tackle price-sapping capacity gluts.
The province also plans to hand out 2.18 billion yuan this year to help coal and steel firms fund layoffs from the two sectors.
In a statement published on the province's official website (http://www.henan.gov.cn), the regulator said the banks also pledged to offer full support to a 8,000-strong pipeline of major projects in Henan, as well as 100 public-private partnerships.
It said it would support companies that are "in accord with the direction of state policies" in their efforts to restructure, upgrade their equipment and products, and cut excess capacity.
Financial support will also be extended to bolster the reform efforts of major state-owned firms like the Pingdingshan Shenma Coal Group, the Zhengzhou Coal Group and the Anyang Steel Group, it said.
"For the reform of key sectors like coal, steel and nonferrous metals, we will continue to offer help and control, and deal with each case on its merit," the regulator said.
($1 = 6.6694 Chinese yuan)
(Reporting by David Stanway; Editing by Shri Navaratnam)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jordan's king asks PM to form new government: government source
- Kerry's ceaseless diplomacy faces sternest test on Syria
- British PM May rebuffed calls to play bigger role in EU referendum campaign
Create E-mail Alert Related CategoriesReuters
Related EntitiesCrude Oil
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!