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ICBC Makes New Progress in Serving the Real Economy in 2017H

In the first half this year, ICBC has implemented supply-side structural reform by focusing on key areas of economic development and improving the efficiency and quality of serving real economy. ICBC has exhibited three main characteristics in serving the real economy in the first half this year.

First is the new breakthrough in supporting major national strategy. In the first half, ICBC has stepped up support for major national projects, and has granted project loans worth more than RMB 670 billion, up by RMB 180 billion versus last year. ICBC implemented strategies such as China Manufacturing 2025 and Internet plus by supporting various industries including advanced manufacturing industry, strategic emerging industry, modern service, culture industry, modern agriculture, and energy saving and environmental protection industry via diversified financing. For example, the loan balance to advanced manufacturing industry was almost RMB 530 billion as of the end of June, which has increased 8.13% compared to the beginning of the year. In this April, after the CPC Central Committee and State Council made the major strategic deployment of establishing Xiong’an New Area, ICBC set up Xiong’an New Area Branch to support and meet the financial demand for the construction of the new area. During the Belt and Road summit, ICBC successfully hosted the Belt and Road bankers roundtable, initiated Belt and Road bank cooperation action plan with major banks in Pakistan and other countries, established normalized cooperation and negotiation mechanism among the banks along the Belt and Road.

Secondly, ICBC has made new progress in promoting inclusive finance. In the first half this year, ICBC focused on key areas including small and micro enterprises, basically forming an inclusive financial development model with its own characteristics. As of the end of June, ICBC’s loan balance to small and micro enterprises has increased RMB 157.2 billion over the same period last year, representing a growth rate of 8%. Recently, ICBC has set up an inclusive financial business department as well as inclusive financial business departments in provincial and municipal branches to improve inclusive financial services. ICBC has innovated the financial service model of small and micro enterprises by using Internet and big data technology, launching new products such as online microcredit, online revolving loan, electronic supply chain financing, which has realized online automatic application, automatic approval and loan on one click ICBC also contributed to establish the small and micro start-up financing fund with the Department of Finance of Jiangsu Province to provide credit support for small and micro start-ups. Currently the small and micro start-up loan project has supported more than 8000 small and micro light-asset enterprises, with loan balance amounting to RMB 15.4 billion. In terms of targeted poverty alleviation, by the end of the first half this year, the credit loans for targeted poverty alleviation has exceeded RMB 100 billion, up by 9.6% compared with the beginning of the year. ICBC has organized a series of activities on e-commerce poverty alleviation by taking high-quality agricultural products and tourism resources into e-commerce platforms to address challenge in the sales of agricultural products.

Third is the progress in supporting supply-side structural reform. In the first half, ICBC has supported cutting excessive industrial capacity in key areas such as steel and coal. Based on the principle of sustainable business and controllable risks, ICBC has continued to provide financing support for steel and coal enterprises with advanced technology and equipment, competitive products, and market demands, while reducing and withdrawing financing support for outdated capacity enterprises, zombie enterprises, and inferior enterprises. ICBC also supported destocking in housing market in third and fourth tier cities, with key focus on financing requirements for residential purpose. ICBC also implemented measures to support corporate de-leveraging. For example, ICBC steadily boosted debt-to-equity swap in accordance with the principles of legislation and marketization. ICBC Financing Assets Investment Ltd., the enforcement body of debt-to-equity swap, was approved to be established, and has signed debt-to-equity swap cooperative agreements with Shandong Gold Group, Taiyuan Iron & Steel Group, and some other enterprises, with a contract amount of nearly RMB 200 billion.