China's top economic planner, ICBC pledge support for private firms in Hubei

China's top economic planner and the country's biggest commercial lender have jointly launched a special plan to beef up support for private enterprises in Hubei province, which was hit hard by COVID-19.

Private companies in the province will be given more credit support, with the application and approval procedures to be simplified, according to a notice jointly issued by the National Development and Reform Commission (NDRC) and the Industrial and Commercial Bank of China (ICBC).

The plan prioritizes support for advantageous industries and industrial clusters as well as private enterprises in equipment manufacturing, energy and chemical sectors.

For enterprises in hard-hit sectors in the province, such as accommodation, catering, logistics and tourism, the plan will see their financing demand met by extending or renewing loans, along with other refinancing measures.

Key support will also be given to high-end manufacturing private enterprises and major projects in fields including infrastructure, poverty reduction, rural vitalization, environmental protection and public health, in which the private enterprises take part.

The ICBC head office will arrange 10 billion yuan ($1.4 billion) of special credit and issue the loans on a monthly basis, while its branch banks will offer preferential interest rates, according to the plan.