Statistics from the Shanghai Headquarters of the People's Bank of China shows that rate of growth in bank lending has slowed markedly, and China's state owned commercial banks are turning their attention to major infrastructure projects.

Guangxi Transport Construction Investment Group plans to spend more than one hundred billion yuan on highways in the next 5 years. A number of domestic banks including China Construction Bank, Bank of China, and Bank of Communications, are financing the investment. A ceremony to mark the signing of the loans was held yesterday at Nanning, capital of the Guangxi Zhuang Autonomous Region.

According to an insider, it is a natural move for domestic banks to invest in major development projects. As private loans become less and demand for credit decreases due to the ongoing financial turmoil, domestic banks are increasingly switching to the safer option of lending to state-backed projects.

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(China.org.cn by Xiang Bin November 20, 2008)