The Chinese unit of Nippon Electric Glass has secured a Yn200m loan from the China Development Bank. This is the first time that the state-owned bank, which concentrates on lending for infrastructure projects, has made a loan to a firm affiliated with a Japanese corporation.
Shijiazhuang Baoshi Electric Glass will use the funds to repay short-term debt and invest in plant and equipment. A growing number of foreign investors in China want yuan-based loans to expand capacity.
China Re seeks foreign investors The president of state-owned China Reinsurance said that his company was seeking foreign investors to take strategic stakes in the company as it restructured ahead of a possible public listing, Reuters reported. Dai Fengju said it was looking for up to five investors who would hold a combined 25 per cent stake, with no one stake exceeding 10 per cent. The company, which hopes to raise about Yn2bn from the sales, has been talking to potential investors from Asia.
China Reinsurance was created from the reinsurance business of the People's Insurance Company of China and is currently state-owned. At present, insurance companies in China have to reinsure 20 per cent of their risks with it, but under the terms of China's accession to the World Trade Organisation, that proportion will be cut gradually and eliminated altogether by 2006.