Competition For Local Government Projects

Local governments are planning to report a number of new projects.

A person familiar with the matter told reporters that Shanghai is striving for a new batch of projects that failed to pass the examination and approval. The maglev extension of Shanghai is likely to be re submitted for examination and approval.

The central bank said in November 10th that it would lift the credit limit on commercial banks.

Liu Shiyu, vice governor of the central bank, has also gone to the Yangtze River Delta to investigate the real economy.

"(central bank) or follow up policies."

In November 12th, a person familiar with the matter

Although there are many good news, the major banks still show caution.

"Now banks are cautious in lending and not willing to lend."

A bank in Shanghai

Shanghai maglev extension "release"?

"After the bank has no quota control, we must increase our support for the economy."

The insiders of the ICBC said, "the key investment projects of the state will definitely be the support objects of the banks. And if the projects are approved by the NDRC and meet the relevant conditions, the branches will be able to support them as long as they are in line with national policies."

The Shanghai operation is more rapid.

Recently, the Shanghai municipal government and the Shanghai Municipal Development and Reform Commission frequently discussed with members of the financial sector, including all parties concerned, to listen to the future of Shanghai.

67 major projects in Shanghai this year were basically completed in 9.

According to the analysis of the participants, from the perspective of Shanghai, the government first pays more attention to the projects that have been reported to the central authorities but have not been approved yet.

Because of the macroeconomic control factors, some construction projects may still be delayed or "sneaky" to prepare, so these projects of local governments are now likely to be "released".

The extension line of Shanghai maglev line is a controversial project.

During the two sessions this year, Han Zheng, mayor of Shanghai, said that the extension line of the maglev line is still in the stage of listening, which is not in the 67 major projects in 2008.

In addition, Shanghai Disneyland theme park construction plan has been reported to the relevant departments of the state, the location of the first choice for Pudong, but is still in the process of examination and approval.

4 trillion the investment drive has led to the expectation that these "Shelved" projects will be released.

A participant in the meeting estimated that magnetic levitation is likely to be reported to the NDRC in the period of encouraging investment.

The banks are highly concerned about these major projects.

In November 12th, a senior bank executive in Shanghai said that he was very concerned about the projects being supported by local governments. They were searching the branches to understand the investment trends of local governments.

The headquarters of the people's Bank of China also held some monetary and credit seminars in Shanghai and foreign commercial banks in November 12th.

Hu Pingxi, deputy director of the Shanghai headquarters of the people's Bank of China, requested that commercial banks in Shanghai should expand their credit scale reasonably and stick to different treatment and maintain pressure.

We should actively support the construction of key projects in this city, and increase credit support for small and medium-sized enterprises, technological pformation, development of circular economy, merger and reorganization.

In fact, these major infrastructure construction loans are closely related to credit funds.

In 2000, the initial investment of Pudong airport to Longyang section was 6 billion 900 million yuan, of which 2 billion was capital, which was invested by 7 major state-owned enterprises, including Shentong Metro Group, Baosteel, SAIC and Shanghai electric company, and the rest was bank loans.

"I have reached a consensus with the wind control department, even in the credit limit control period, the government investment infrastructure, traffic construction and environmental improvement projects are focused on."

A joint-stock bank Nanjing branch executive said.

The reason why banks attach so much importance to this is that the risk of this kind of credit is larger than that of schools, taking railway construction as an example. These executives believe that such loans are usually issued in the form of equity pledge or in the form of project loans, and syndicated loans are adopted. Usually, a "comfort letter" will be issued by the financial sector, and the future railway revenue will be used as the source of repayment.

"In the Yangtze River Delta region, local finance is strong, and railway revenue will not be bad, so banks can rest assured."

The executives of the Nanjing branch of the joint-stock bank said, "if we are going to the railway in some remote areas, we have to reconsider."

In addition to infrastructure, small and medium-sized enterprises are also one of the key supporting objects of big banks.

"We have been focusing on small businesses and infrastructure, including urban infrastructure."

One of the branches of the Construction Bank of China said that it had long been involved in infrastructure projects such as railway construction.

ICBC insiders also revealed that recently, ICBC executives also made clear that the financing needs of small businesses should be satisfied as far as possible.

Mortgage: intervention through fitness room

Under the moderately loose monetary policy, will the credit attitude of different banks to real estate be changed?

Many banks have tightened their support for real estate development loans for fear of falling prices.

Take Shanghai as an example. In the 3 quarter of this year, the real estate development loan increased to -28.8 billion yuan.

The executive meeting of the State Council has identified ten measures to further expand domestic demand and promote economic growth. The first is to speed up the construction of affordable housing projects.

In November 10th, a large bank credit officer said that for the real estate industry, "there are no specific policies yet, but the formulation has changed". The original purpose of real estate regulation and control policy is to curb the excessive growth of housing prices. Now the formulation is to promote the steady and healthy development of the real estate market.

The big bank credit officer said that before the real estate industry is a high-risk industry, the pressure on banks to reload the loan industry has been very low; "now, the real estate to the national economy pulling role is more obvious, a burden on investment, a burden on consumption.

In fact, to create a win-win situation, it is proposed to listen more to the voice of developers, or to support, can not suppress. "

But in November 12th, a Shenzhen based joint-stock bank credit officer felt that he would still be cautious about real estate loans, because he still expected market prices to drop because the rise in trading volume must be based on falling prices.

At present, the divergence of the market is that one thinks that it should lend money to high-grade housing, because the high grade housing market is scarce, and it can still keep value and risk. But the other thinks that it is safer to extend the development loan to the economically affordable housing.

The bank's attitude seems to be increasing credit support for affordable housing.

A case in point is that China Metallurgical Group recently signed 10 billion real estate development investment credit with the National Development Bank to locate the national affordable housing development.

Another joint-stock bank also indicated that they would also give credit to the China Metallurgical Group for the development of affordable housing, which is currently under the approval process of the head office.

"In addition to social benefits, the economic benefits of intervening in affordable housing loans are more important.

Compared with general development loans, the source of repayment of affordable housing is the government. If it can ensure project returns and financial security problems, it will be a good loan.

The joint-stock banks explained why.

Large banks sluice: cautious loans at all costs.

In fact, the moderately loose monetary policy has begun to see results in October.

In November 12th, the central bank released statistics showing that at the end of 10, the balance of loans of financial institutions was 29 trillion and 830 billion yuan, up 14.58% from the same period last year, an increase of 0.1 percentage points higher than the end of last month.

RMB loans increased by 181 billion 900 million yuan in that month, up by 45 billion 700 million yuan compared with the same period last year.

With the introduction of the ten measures of the State Council and the five measures of the central bank, large banks will take the lead in expanding the credit scale.

In November 12th, the Bank of Communications Research Department predicted that, combined with the situation of 1998-1999 years, after the policy of stimulating domestic demand and the restriction of credit scale were abolished, the proportion of bank loans to social capital investment will rise to about 20% next year.

Therefore.

If 4 trillion investment is assumed to be a new investment and the average investment is in 2009 and 2010, then the policy of stimulating domestic demand will lead to an increase of about 400 billion yuan in bank loans in 2009. It is estimated that the growth rate of RMB loans of commercial banks in 2009 will increase by 13%-14% or 4 trillion.

On November 11th, Wang Zhaowen, a spokesman for the Bank of China, said that the bank would lift the restrictions on the new loan scale of RMB branches of various branches and promote the effective credit placement of all branches.

Prior to this, a person familiar with the matter said that ICBC executives had proposed to adjust the incremental credit planning during the central research period. This year, the credit will be added 20% to the plan set up at the beginning of this year, including 5% of the central bank's supplementary use for agriculture, small businesses and post disaster reconstruction.

This year, ICBC's RMB loan increment plan is set at 365 billion yuan. If additional 20%, the bank's credit growth rate in 2008 will exceed 2007.

For this reason, a number of ICBC's first tier branches said they were not aware of the situation and need to hold relevant meetings before the head office could make a clear decision.

"Although the direction of adjustment is moderately relaxed, it has not yet received the intention of the head office."

A similar view was expressed by the people at the first level of the CCB.

A branch of a branch of the Agricultural Bank of China who was consulted by our reporter said that the head office had not yet seen the specific documents to expand the credit scale.

When big banks responded positively to macroeconomic policies, some small banks showed ambivalence.

"On the one hand is the pressure of credit risk exposure, on the one hand, the pressure from the government."

In the evening of November 11th, a farmer in South of Jiangsu said frankly.

Obviously, banks are still concerned about the full liberalization of credit.

The state has increased investment, "the opportunities of banks have also come, but the brain should not be hot. In the face of general projects, banks must first consider risks."

Insiders of the industry bank said.

"The spirit we send to the branches is that we should not be too pessimistic about the trend of the economic situation, nor can we be too optimistic. Different industries and industries still need to be treated differently."

The chief executive of the Shenzhen based joint-stock bank said that the industries that are still focused on are infrastructure, environmental protection, high technology and other industries that are anti cyclical.

"Now it is prudent but not reluctant to lend."

Another financial executive in Shanghai said.

Local governments: increasing effective credit input

Recently, the eastern provinces of Zhejiang and Anhui of central China have convened a forum for commercial banks. The main thrust is still to increase credit.

"Before the Zhejiang provincial government held the economic situation analysis meeting, it still asked all banks to support as much as possible. At that time, the ten measures of the State Council have not yet been promulgated."

In November 12th, a joint-stock bank in Zhejiang said that commercial banks were more cautious because of the poor economic situation.

The central province of Anhui is also worried about the size of credit.

In November 5th, the Anhui provincial government convened the heads of financial institutions to hold a special meeting on increasing effective loans.

In recent years, Anhui has been very eye-catching in six central provinces.

In the first three quarters of this year, GDP in Anhui increased by 13.4% over the same period last year, and the growth rate was third in six provinces.

Behind this pcript, Anhui's credit growth has also been among the six central provinces.

By the end of 6 this year, the RMB loans in Anhui's banking sector increased by 15.8%, up 1.6 percentage points from the national average, ranking six in the central region.

At the meeting, Sun Zhigang, member of the Standing Committee of the Anhui provincial Party committee and deputy governor of the Standing Committee, stressed that all financial institutions should strive for the credit scale and expand effective credit delivery, and continue to maintain a good momentum of rapid growth in loans.

"But the credit scale of our branches has not increased yet. Although it is moderately relaxed and the scale of credit expansion is expanding, the head office has to increase (scale).

At the meeting, ICBC said that it had not received the policy of the general bank (including the amount).

In November 12th, a Anhui branch of a large bank told a newspaper reporter.

Recently, the Anhui provincial government has issued fourteen opinions on promoting steady and rapid economic growth.

Sixth of them put forward that financial support should be strengthened. "The provincial government finance office should coordinate the efforts of all banking financial institutions to expand credit supply, especially to increase the loan support for enterprises' liquidity, and to reduce the interest rate as far as possible.

The provincial government will reward the outstanding performance according to the assessment results.