China's banks expanded credit support for rural industries and households in the first half of the year, as borrowing costs declined and local governments introduced new measures to support sectors including marine aquaculture.
Outstanding inclusive agriculture-related loans stood at 14.99 trillion yuan, or more than 2.2 trillion U.S. dollars, at the end of June, up 7.55 percent from a year earlier, data from the National Financial Regulatory Administration showed.
The average interest rate on newly issued loans in the category was 4.02 percent in the first half, down 0.36 percentage points from a year earlier.
Agricultural Bank of China said its outstanding loans to rural industries rose 18.1 percent in the first half as it expanded financing for locally distinctive industries.
China Development Bank issued 25.9 billion yuan, or about 3.8 billion U.S. dollars, in agricultural loans in the first half, up 111 percent from a year earlier. The policy bank focused on high-standard farmland, modern agricultural facilities and state farms, aiming to strengthen agricultural production capacity and improve efficiency.
At the provincial level, authorities in south China's Guangdong Province and the east China provinces of Fujian and Shandong have introduced policies this year to expand financial support for marine ranching and the broader marine economy, including aquaculture.
"We have introduced a targeted 20-point policy on marine finance and 10 measures for marine ranching to address a range of issues, including obstacles to financing and registration, as well as the sector's specialized requirements," said Cao Guangqun, deputy director-general of the Guangdong financial regulatory authority.
The National Financial Regulatory Administration has called on large and medium-sized banks to expand agricultural supply-chain finance, reach more first-time borrowers and, in line with regulations, provide greater support for loan extensions and renewals for agriculture-related businesses and rural households.
China's inclusive agriculture lending rises 7.55 pct by end-June
China's inclusive agriculture lending rises 7.55 pct by end-June
