OREANDA-NEWS. February 14, 2011. At the first 2011 work meeting of China Development Bank Corporation (the Bank), Chairman of the Board of Directors Chen Yuan pointed out that the Bank had actively played out its role and carefully implemented the country's macroeconomic policy, reported the press-centre of China Development Bank.

He stressed that the Bank had used its advantages in development finance, medium and long-term investment & financing over the past year in order to produce excellent results. While continuing to focus on such areas as infrastructural development, industrial upgrading, regional coordination and development and improvement in public welfare, the Bank had pushed ahead with its go-global strategy. With its international economic and financial cooperation bearing fruit, the Bank saw strong growth in each of its business segments during the course of the year.

By 2010's year-end, the Bank's assets exceeded RMB5 trillion while its NPL ratio stood at 0.68% (below the 1% mark for the 23rd consecutive quarter) and the Bank reported a yearly net profit of RMB35.3 billion.

The meeting was presided by the Bank's President Jiang Chaoliang. Jiang Dingzhi, Member of the Standing Committee of the CPC Hainan Committee and Vice Governor of Hainan, addressed the meeting. Other important attendees included the Bank's Chairman of the Board of Supervisors Yao Zhongmin, Secretary for Disciplinary Inspection Zhou Qingyu, member of the CPC Committee Zhao Jianping, Vice Presidents Gao Jian, Li Jiping and Wang Yongsheng, besides representatives from central government departments.

Chen Yuan pointed out that the Bank in 2010 had adhered to the principles of "controlling the aggregate loan amounts, focusing on prioritized areas, adjusting the structure in accordance with state priorities, controlling risks and promoting coordination". Loans were granted in a coordinated manner to promote the adjustments in economic structure and changes in the mode of development as aligned with central government policies.

During 2010, almost three-fourths of its lending went to: infrastructure; basic industries and pillar industries such as coal, electricity, oil, transport, agriculture, forestry, water and communication; and nationally strategic projects such as the South-North Water Diversion, Beijing-Shanghai High-speed Rail, and purchase of petroleum for the national petroleum reserves. In terms of regions, nearly 70% of the Bank's lending was to the central and western areas and the old northeast industrial bases. Additionally, the Tibet Autonomous Region and Tibetan areas in four other provinces saw an increase of RMB19.9 billion in loans from the Bank, while Xinjiang saw an increase of RMB22.3 billion, up 47% and 20% respectively year-on-year.

The Bank actively promoted industrial upgrading and pilot projects in three-net (telecom, computer and cable TV networks) integration, emerging industries of strategic importance, such as alternative energy-powered autos. By the end of 2010, CDB's loan balance to projects in the cultural industry was RMB92.8 billion. Eco-friendly and low-carbon financing was advocated – the Bank lent RMB232.0 billion to energy conservation, emissions reduction and other "green" projects to support the country's endeavors to build an energy-conserving and environment-friendly society.

Projects that benefit farmers, agriculture and rural areas, as well as those that help improve public welfare remained a priority for the Bank. Last year, the Bank lent over RMB100 billion to borrowers in each of these three fields: building of new rural countryside; housing for the low-and-medium-income families; and financing to small and medium enterprises (SMEs). Specifically, RMB118.8 billion was used to support the construction of rural infrastructure and foster the development of leading agricultural businesses; the balance of loans for SMEs reached RMB103.6 billion, and of all the Banks in China, the Bank ranked first in loans for housing of low-and medium-income families, with RMB131.5 billion granted, benefitting over 15.81 million people. The Bank's student loans (either to universities or hometowns of the students) reached RMB8 billion, 70% of the national total. Great efforts were made to support Safe School Building Projects for primary and middle schools in Shanxi, Qinghai and other provinces. In 2010, the Bank also established an information sharing mechanism with the National Disaster Reduction Office, while granting emergency-response loans totaling RMB2.41 billion. 

The Bank expanded its international cooperation endeavors, in order to achieve win-win solutions overseas. Noteworthy successes of important projects included the huge credit arrangement between China and Venezuela, and support of the overseas expansion initiatives of PetroChina, Sinopec, State Grid, CITIC Pacific, Tongling Nonferrous Metals Group, Goldwind and Xi'an Electric Engineering Co., Ltd. The Bank extended loans to SMEs in 23 African countries. By the end of 2010, the Bank's outstanding loans in foreign currencies reached USD141.3 billion, meeting the funding needs of projects covering 90 countries and regions. The Bank remains a leading financial institution in China in international investment and financing. 

In 2011 and beyond, Chen noted the Bank would continue to highlight the importance of advanced, long-term planning in guiding its business development, bolstering its support for energy, transport and other major areas of infrastructure. It will follow the country's regional development blueprint, working hard to support the "Go West" campaign and the revival of the old industrial bases in northeast China. The Bank will also focus on farmland irrigation and other areas in special need of funding support, as well as water conservancy facilities. The Bank will deepen its cooperation with the Ministry of Housing and Urban-Rural Development and governments at various levels, adding RMB100 billion of housing loans for low-and medium-income families. Moreover, the Bank will push forward international cooperation and long-and medium-term financing to contribute to an accelerated but sustainable and coordinated program of national economic development.