BANKS FORM CONSORTIUMS, AID PRIVATE ENTERPRISE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600350025-5
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: August 22, 2011
• Sequence Number: 25
• Publication Date: September 27, 1950
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/09/14: CIA-RDP80-00809A000600350025-5
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
CLASSIFICATION CONFIDENTWJONEIDENTIAE
I
HOW
PUBLISHED
WHERE
PUBLISHED
DATE
PUBLISHED
LANGUAGE
Economic - Finance
Daily newspapers
Peiping; Ningpo; Hong Kong
3 - 14 Jul 1950
Chinese
THIS DOCUMENT CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE
OS THE UNITED STATES WITHIN THE NUANINS OF [SFIONANE ACT SO
U. S. C., SI AND SI. AS AMENDED. ITS TNANSNUSION ON THE REVELATION
OF ITS CONTENTS IN ANY MANNER TO AN UNAOTNONITSP FERlOM IS I'RO
NISITUD SY LAW. REPRODUCTION OF THIS FORM IS /NOHISITED.
DATE OF
INFORMATION 1950
DATE DIST. 0 Sep 1950
NO. OF PAGES 2
SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
During May and June 1950, national banks and private consortiums through-
out China continued to render assistance to private enterprises contributing
to the national economy, so that they could maintain production and continue
in operation.
According to incomplete data, national banks in seven major cities had
loaned, as of 23 June 1950, a total of 308 billion yuan, of which 58.44 percent
went to private enterprises. Individually, the figures are 136 billion for
Shanghai, 83.7 billion for Tienssin, 31.7 billion for Hankow, 22.9 billion for
Peiping, 21.7 billion for Chungking, 7.9 billion for Canton, and 4.1 b_'.llion
for Sian. The percentage of private loans ranged from 95 percent for Hankow,
and 90 percent for Shanghai and Chungking, to 27 percent for Peiping
In addition to direct cash loans, the national banks also sponsored finan-
cial consortiums of various types, bringing together private banks to give finan-
cial assistance to industry and commerce. Most of the 800 private banking firms
throughout China are participating in such consortiums. So far the ones in
Shanghai, Tientsin, Peiping, Hankow, Wu-ch'ang, Chungking, Ch'eng-tu, Soochow,
Nan-ch'ang, Nanking, Hangchow, and Wu-hsi have loaned a total of 60 billion yuan,
of which 44.4 billion was loaned in April and May alone.
Canton, 13 July -- The Canton Branch of the People' a Bank, Shanghai Commer-
cial and Savings Bank, New China Trust, Savings, and Commercial Bank, China In-
dustrial Bank, Ho-ch'eng Bank, Chin-ch'cng (Kingcheng) Bank, Chu-hsing-ch'eng
Bank, Kuo-hua Commercial Bank, and Tung-fang Hui-li Bank have formed a loan con-
sortium.
The amount of loan capital to be made available was set at 4 billion yuan.
The vice-president of the Canton Branch of the People's Bank was elected chairman
of the Joint Committee, and the manager of the Shanghai Commercial and Savings
Bank as vice-chairman,
CONFIDENTIAL
DISTRIBUTION
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Sanitized Copy Approved for Release 2011/09/14: CIA-RDP80-00809A000600350025-5
 Sanitized Copy Approved for Release 2011/09/14: CIA-RDP80-00809A000600350025-5
CONFIDENTIAL
The purpose of the joint enterprise is to increase the amount of loan capital
available and to direct fluid capital into industrial enterprises.
NINGPO PEOPLE'S BANK ASSISTS PRIVATE FIRMS -- Ningpo Shih-pao, 9 Jul 50
The Ningpo branch of the People's Bank has loaned e, total of 900 million
yuan to worthy private enterprises in the first half of 1950.
Interest rates were also adjusted downwards after prices stabilization and,
on i8 April 1950, daily interest rates were eliminated altogether in favor of
the prewar practice of monthly payments. Rates were adjusted 12 times in the 6-
month period, from a daily rate of 18 yuan Jer thousand] prior to 18 April down
to 3-4.2 cents.
Private firms were the primary recipients of all loans, accounting for 75.7
percent. Of that percentage, 68 percent was set aside for industrial firms. Next
in line were private communications and public utilities companies.
PEOPLE'S BANK SETS FUTURE GOALS -- Ningpo Shih.-pao, 9 Jul 50
Peiping -- Future policies of the People's Bank of China will include the
following goals:
1. Continuation of past policies aimed at attracting deposits and establish-
ing treasuries. Already, 1,657 treasuries (chin-k'u) and 333 business treasuries
(ch'i-yeh chin-k'u) have been established.
2. Adjustment of the relationship between financial agencies and private
enterprises to render the necessary financial assistance to the latter.
3. Attraction of cash into the banks Jinstead of allowing it to be hoarded
by individuals].
4. Popularization of people's notes in rural areas, thus improving the cir-
culation of domestic currency, halting the circulation of silver dollars and foreign
currencies, and aiding the purchasing and marketing activities of state trade cor-
rorations.
5. Stabilization of currency exchange values, designed to encourage foreign
trade and attract overseas Chinese remittances.
CONFIDENTIAL
Sanitized Copy Approved for Release 2011/09/14: CIA-RDP80-00809A000600350025-5