The Jiangsu Branch of the Agricultural Bank of China has continuously revolutionized its financing means and injected strong driving force for the development of the real economy.
Xixiashu Town is known for its production of high-end knife and tool that are used in the making of mobile phones and high-speed railways.
In the past, due to the lack of collaterals such as land certificates, many local companies were unable to secure loans from the local banks, making it difficult for them to upgrade their equipment manufacturing.
This year, the provincial Agricultural Bank of China has listed the Xixiashu knife tool industry cluster as one of the key recipient of bank loans by opening financing channels for companies through innovative guarantee methods.
In Hai’an County, the hometown of cocoon and silk in China, Mr. Wu, a family farmer, expanded the planting area of mulberry trees. Since the launch of his farm in 2015, Wu has embarked on compound breeding that relies on silkworm as the mainstay to feed chickens, ducks and sheep, which has boosted the family’s annual income to over 200,000 yuan.
However, building roads and sheds is costly and it was by no means a small sum of money.
Xinyuan Company is a local flagship silk company. With the growing areas of mulberry trees shrinking, over the past two years, the company has joined hands with the Agricultural Bank of China to provide loans to the farmers and help them expand their operations. The local branch of the Agricultural Bank of China has provided a total of 820 million yuan in credit loan to support the farmers.
In addition to direct credit support, the Agricultural Bank of China has also meets the diversified financing needs of listed companies in the province through investment banking services such as exchangeable corporate bonds. Earlier this year, the province's total amount of agricultural bank loans reached 1,016.17 billion yuan, making it the first banking institution in the province to grant more than 1 trillion yuan of loans.
(Source: Jiangsu International Channel)
