China Development Bank
China Development Bank (CDB) is one of the major policy banking institutions in the People’s Republic of China. It was established in 1994 with the mission to provide financing and financial services to support the economic and social development of the country. It operates in accordance with the leadership and guidance of the Central Government and China’s economic and social development goals.
CDB promotes China’s economic development by investing in public and private enterprises, financing infrastructure projects and providing local government financing vehicles (LGFV) with funds for construction projects. As a policy bank, the Bank has three distinct characteristics: firstly, it provides significant policy-oriented financial support for projects related to government objectives and policies; secondly, it has strong ties with the government; and finally, it functions as a conduit for policy credit implementation.
The Bank’s investment activities focus on three main sectors: infrastructure, key industrial sectors, and core functions of supply chain and services. To support the establishment of new urban and rural infrastructure, CDB provides project financing and venture capital, as well as providing direct loans, convertible bonds, and other forms of investments. The Bank also finances key industrial sectors and modern industrial chain, such as high-end manufacturing and energy-efficiency technologies. Additionally, it provides financial services to core functions of the supply chain that enable efficient production and distribution.
The Bank also plays a major role in poverty alleviation as part of Chinas nationwide efforts towards achieving an adequate standard of living for all of its citizens. To this end, CDB has set up a number of Financial Inclusion Projects, providing loans to small and micro enterprises, as well as rural and urban households in poverty-stricken regions. The Bank also works with international partners such as the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) to provide funding for poor countries.
In its capacity as a major policy bank in China, CDB has taken on a leading role in Chinese economic reform. Its wide range of operations, from infrastructure development to agricultural finance and from strategic industry support to poverty alleviation, has propelled China’s economic growth and made great contributions to the country’s development. The Bank is also increasingly playing a role in global cooperation and investment. It has established strategic partnerships with many foreign institutions, including the ADB and AIIB. Through these partnerships, the Bank contributes to global economic and social development.
