A state-run bank in China’s southernmost province appears to be running a targeted lending program aimed at expansion of domestic offshore aquaculture and wild-catch fisheries.
The regional branch of the Hainan Postal Savings Bank claims it has CNY 1 billion (USD 145.6 million, EUR 127.9 million) outstanding in loans to aquaculture firms. In its disclosure report, it said an increasing share of the loans to the aquaculture industry are for the expansion of deep-water offshore production, as farmers adapt to increasingly disruptive typhoons.
One of China’s leading banks in terms of deposits and loan book, the Postal Savings Bank has long been used as a policy bank to achieve government policy on poverty reduction. With its large network of branches in rural areas the bank is, like all China’s big banks, run by government officials. While policy-driven lending has led to high rates of non-performing loans, it has also helped achieve government policy goals in fisheries and other sectors.
The bank’s current borrowers, listed by local media, include Hai Feng Aquaculture Development Co., which farms several species including silver pomfret, a staple in China. A report on its lending activities issues by the bank shows that of the outstanding loans, some CNY 400 million (USD 58.2 million, EUR 51.2 million) went to aquaculture, while CNY 600 million (USD 87.4 million, EUR 76.8 million) went to fishing companies building or renovating vessels. Hainan is a base for many of the fishing firms targeting fishing grounds in the South China Sea, including those disputed areas where China has built artificial islands.
