Several State-owned enterprises (SOEs) have accumulatively received 135 billion yuan ($19.78 billion) credit quota from banks in a week, contributing to their lavish purchase of "land kings", said a Securities Times report on March 18.
SOEs' huge credit quota stimulated their investment wills, and created more "land kings" in the real estate industry, according to experts quoted in the report.
The report said that China Railway Group signed a strategic cooperation agreement with the Agricultural Bank of China (ABC) on March 10, 2010. According to the agreement, the bank promised 110 billion yuan credit quota to the group for its expansion in project construction, resource exploitation, equipment manufacturing and property development sectors. This was the largest credit quota that SOEs got this year.
ABC also inked a similar agreement with China Gazhouba Group on March 12, offering 20 billion yuan credit quota.
On March 15, Guangdong Development Bank agreed to provide China National Materials Group Corporation with all-around financial services and a five billion yuan line of credit, supporting its development in the low-carbon economy, emission reduction and clean energy fields.
On March 8, China's policy lender, Export-Import Bank of China, signed an agreement with China National Building Material Group to provide credit support for the group and its affiliates' import and export loans and concessional loans.
