China Rongsheng Heavy Industries has inked an agreement to obtain RMB11bn ($1.7bn) credit line from China CITIC Bank to expand its operations, Seatrade Asia reports.
A credit line of RMB9bn will be awarded to Jiangsu Rongsheng Heavy Industries to construct a shipbuilding and offshore engineering base, while a RMB2bn credit line will be granted to China Rongsheng for use in its engineering machinery and marine engine building segments.
A credit line of RMB9bn will be awarded to Jiangsu Rongsheng Heavy Industries to construct a shipbuilding and offshore engineering base, while a RMB2bn credit line will be granted to China Rongsheng for use in its engineering machinery and marine engine building segments.
The credit line from China CITIC Bank comes despite the Chinese government's macroeconomic austerity measures such as tightening monetary policy and standardisation of financing. Industry players believe that the continuous monetary restrictions in China pose great pressure on corporate loans.