Banks in China's Henan pledge more support for local economy
- Wall Street surges to new highs; transports set record
- lululemon athletica (LULU) Tops Q3 EPS by 4c; Adj.-Comps Outpaced Views
- Abbott (ABT) Files Complaint to Terminate Alere (ALR) Acquisition
- Costco Wholesale (COST) Tops Q1 EPS by 5c; Comps Up 1%, 2% Ex-Gas
- After-Hours Stock Movers 12/07: (VYGR) (LULU) (HRB( Higher; (OHRP) (VRNT) (CMTL) Lower (more...)
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a 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
- Court blocks New York City from discarding illegal immigrants' data
- New Zealand finance minister emerges as likely PM as rival drops out of race
- Japan to increase loan to Fukushima operator Tepco to $123 billion: source
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!