China to give additional 10 billion yuan in loan to SCO member banks in 3 years

China to give additional 10 billion yuan in loan to SCO member banks in 3 years

In a significant move to bolster economic cooperation within the Shanghai Cooperation Organization (SCO), Chinese President Xi Jinping announced plans to provide an additional 10 billion yuan in loans to the member banks of the SCO Interbank Consortium over the next three years. The announcement was made during the 25th Meeting of the Council of Heads of State of the SCO held in Tianjin.

Xi Jinping's pledge underscores China's commitment to strengthening financial ties with SCO member states. This latest initiative follows a previous grant of 2 billion yuan to SCO member states, indicating a continued focus on fostering economic growth and stability within the organization. The total investment stock of China in other SCO member states has already exceeded 84 billion U.S. dollars, with annual bilateral trade surpassing 500 billion U.S. dollars, highlighting the depth of China's engagement with SCO nations [1].

The loans will be channeled through the SCO Interbank Consortium, which aims to facilitate cross-border trade and investment among member states. This move is expected to support the development of key sectors such as technology, green energy, and inclusive finance, which have been prioritized by China's major state-owned commercial banks. For instance, the Bank of China has been actively lending to advanced manufacturing and strategic emerging industries, while the Industrial and Commercial Bank of China has seen significant growth in technology and green loans [2].

Analysts have noted that this loan initiative aligns with China's broader strategy of promoting high-quality credit allocation and risk management. The banks are expected to continue focusing on advanced manufacturing, technology upgrades, and green energy, while also addressing existing risks in sectors such as real estate and household credit [2].

This financial support is part of China's broader efforts to enhance regional economic cooperation and stability. As the SCO continues to expand its membership and influence, such initiatives are crucial for fostering a more integrated and resilient regional economy.

References:
[1] https://english.news.cn/20250901/56eb0fc049ed42acb9c40e85a59555f2/c.html
[2] https://www.chinadailyasia.com/article/618950