DBS Bank Hong Kong extends US$16.3 million loan to Qianhai

Will go to further development of Qianhai logistics project.

The Hong Kong branch of DBS Bank has signed a one-year cross-border bilateral loan facility with Shenzhen International Holdings. This is DBS' first such cross-border loan and the seventh formally signed overall.

Gao Lei, chairman of Shenzhen International, said the company has full confidence in developing a modern logistics integrated zone that will provide high-end logistics services, supply chain information and management, innovative supply chain finance and integrated value chains.

DBS Hong Kong believes Qianhai cross-border bilateral renminbi loans will invigorate the flow of renminbi back into China and will accelerate the internationalization of the renminbi.

Under the terms of the agreement, Bank of China's Shenzhen branch will serve as the domestic settlement bank.

Last January, 15 Hong Kong banks agreed to lend an initial sum of US$326 million to Qianhai-based businesses to be used solely for development projects in the special economic zone.

Officials have said there will be no cap on cross-border loans. Applications for loans worth US$864 million have been made, with seven formally signed.