Postal Savings Bank of China (PSBC) President Lv Jiajin signed a strategic cooperation agreement with Zhang Dongke, Vice-President of the Shanghai Stock Exchange, on March 18 in Beijing.
The cooperation promotes structural reform, public entrepreneurship and innovation to give full play to the role of the banking industry and capital markets in servicing the real economy.
PSBC Vice-President Shao Zhibao presided over the signing ceremony.
According to the agreement, the two parties will cooperate in sharing information, joint training and financial support. They will establish a mechanism for information sharing and collaboration to reduce financing costs and promote economic restructuring and upgrading.
PSBC will provide a credit facility totaling 30 billion yuan (US$4.36 billion) to enterprises that are listed on the Shanghai Stock Exchange, and recommend companies that conform to debt issuing conditions for bond financing on the exchange, which provides financial support for industrial development and enterprise growth.
“As an important foundation in China’s capital market, the Shanghai Stock Exchange provides spot and futures exchange, and has the highest degree of openness. It is also world’s most high-profile emerging stock market, focusing on supporting pillar enterprises in the national economy and high-tech enterprises,” said Zhang said. “The two sides will use their respective advantages and cooperate in supporting the real economy and promoting economic restructuring and development with a common effort.”
“PSBC attaches great importance to cooperation with the multi-level capital market. We help market linkage for small and medium-sized enterprises by playing our professional advantages in credit financing, capital settlement and financial innovation, providing capital market services for listed companies,” Lv said at the event. “The strategic cooperation between the two parties is a beneficial attempt in implementing services in the real economy and combining banking with capital markets. The two sides will carry out deep cooperation in market transformation and capital operation.”