China Construction Bank, one of the largest state-owned commercial banks in China, has announced that it provided loans worth 295.5 billion yuan (approximately US$41.2 billion) to support the country’s transportation sector during the first five months of this year, according to Xinhua News Agency.
The bank reported that this amount represents an 11.43 percent increase compared to the same period last year.
The loans offered by China Construction Bank have been instrumental in financing various transportation initiatives, including the construction of expressways, the improvement of congested road sections, and the completion of expressways in central and western regions of China.
To further bolster transportation projects, China has been actively encouraging banks to utilize re-lending facilities to provide financing support. As of the end of March, data from the People’s Bank of China revealed that outstanding re-lending loans specifically allocated for transportation and logistics amounted to 35.4 billion yuan, which marks an increase of 11.2 billion yuan since the beginning of this year.