Zhongshan municipal government has announced to continue the “Interim Administration Measures for Zhongshan Corporate Financing Supporting Fund” for two more years in order to resolve the “bridging financing” problem and help enterprises in on-lending capital cost reduction.

In accordance with Zhongshan Bureau of Financial Affairs, in late 2015, Zhongshan released the “Interim Administration Measures for Zhongshan Corporate Financing Supporting Fund”, according to which a 1.5bn yuan special fund would be established for solving “bridge loan” problem of enterprises.

Since implementation, the “bridge loan” policy has helped lever 30.6bn yuan on-lending capital and finance 1,498 enterprises.

The policy expired in November of 2017. Given the policy effectiveness, Zhongshan municipal government announced on December 15, 2017 to continue the policy for another two years. So far, up to 19 banks have signed cooperative agreements with Zhongshan Financial Investment Holding Co Ltd, the manager and operator of the special fund.