China reportedly to trim loans to some sectors, cement

China reportedly to trim loans to some sectors, cement
Published: 16 October 2009

Chinese authorities plan to curb lending to industries seen to have too much production capacity, such as steel and cement, while expanding loans for technology firms, according to a report Thursday.

The People’s Bank of China and the China Banking Regulatory Commission will likely provide instruction to banks, the Nikkei business daily reported.

Beijing has ordered financial institutions to tighten lending for firms seeking to expand production capacity unless the project for which the funds are used conforms to Chinese industrial policies, the report said without citing sources.

According to a "government blueprint," officials are most concerned with possibly overcapacity in steel, cement, sheet glass, coal chemical, crystal silicon and wind power, with aluminum and shipbuilding also seen as overgrown, the report said.

But the report also said Beijing is interested in increasing financing to high-tech and services firms.