China Released Finance Guiding Opinion on Supporting Energy Conservation and Emission Reduction and Eliminating Backward Capacity

China's central bank and China Banking Regulatory Commission (CBRC) jointly issued documents recently, requiring to strictly control credit loans for energy conservation and emission reduction and elimination of backward capacity, and reasonably withdraw authorized rights of credit loans for the industries of surplus capacity, backward capacity and energy-saving and emission reduction control.

The central bank and CBRC on May 28 released the Opinion on Further Financial Services for Energy Conservation and Emission Reduction and Elimination of Backward Capacity, which points out that we shall use supporting energy conservation and emission reduction and elimination of backward capacity as important reference basis of intensifying the management on banking examination of credit loans. Banking financial institutes shall immediately conduct a full and deep diagnostic investigation into the credit loans and financing for the projects of energy-saving and emission reduction and eliminating backward capacity in their own jurisdictions. And the People's Bank and CBRC will conduct key check and examination and supervision on the results of investigation into credit loans. Information communication among related governmental departments and coordination and cooperation in policies shall be enhanced, with the blacklist system for faith-breaking people and severe punishment for faith-breaking acts.