On December16, 2005, the People’s Government of Zhejiang and CCB signed the Cooperation Agreement on Supporting the Development of Key Projects and Large Enterprises in Hangzhou. CCB will offer the financing support of RMB 100 billion to Zhejiang for key infrastructure projects in the field of energy, transportation, and information. It is reported that this is the second signing activity held by the government of Zhejiang and CCB. In August 2005, CCB signed the cooperation agreement on supporting the development of SMEs with the People’s Government of Zhejiang, according to which, CCB promised to provide the financing support of RMB 60 billion for SMEs in Zhejiang in the coming three years. Thus, CCB will provide the financing support of RMB 160 billion to boost the rapid economic development of Zhejiang.

Governor Lv Zushan of Zhejiang province and Chairman Guo Shuqing of CCB attended the signing ceremony and delivered speeches. Executive Vice-Governor Zhang Mengjin of Zhejiang province and Governor Chang Zhenming of CCB signed the agreement. Vice-Governor Wang Yongming of Zhejiang province and Xie Duyang, Chairman of the Board of Supervisors of CCB were also present at the ceremony.

It is introduced that in compliance with Zhejiang’s 11^th Five-Year Plan of and the Eight-Eight Strategy proposed by Zhejiang provincial government, CCB agreed to provide RMB-60-billion loans to support the rapid development of SMEs in Zhejiang. At the same time CCB will offer RMB-100-billion loans during the period of 11^th Five-Year plan to support key construction projects of Zhejiang such as five projects with each worth RMB 10 billion, construction of advanced manufacturing bases and the projects aimed at the integrated development of urban and rural areas. In light of export-oriented features of Zhejiang’s enterprises, CCB will support them in going global. As for nationwide projects in the field of transportation and energy, CCB may work with local branches to provide fast and convenient financial services for clients doing cross-province business. CCB is able to provide financial consulting services within its credit authorization for key projects and large enterprises in the field of capital operation, project financing, syndicated loans, enterprise restructuring, listing and assets regrouping. CCB may also offer financial services support including feasible study, engineering, technical and economic consulting, financing consulting and asset regrouping for key projects and large enterprises.

At the signing ceremony, Governor Lv Zushan said that Zhejiang would complete a number of infrastructure projects to improve people’s lives during the 11^th Five-Year Plan period. These projects include Ningbo-Taizhou-Wenzhou Railway, Hangzhou No.1 and No.2 Subway and 500KV power grid project. With a view to realizing the interactive development of economy and finance, Zhejiang Provincial Party Committee of CCP and the provincial government endeavor to promote the integration and optimized allocation of financial resources and make Zhejiang an ideal place for the development of financial services.

Chairman Guo Shuqing of CCB expressed that over years of development, CCB has built up its own advantages and features in providing commercial banking services. CCB is a leader among domestic banks in many fields, such as capital construction loans, housing mortgage loans and bankcard services. As of the end of June 2005, CCB’s assets totaled RMB 4.2 trillion and the loans totaled RMB 2,370 billion. In 2005, CCB was listed as the Best Chinese Bank 2005 by The Banker, a British magazine. On October 27, CCB was successfully listed in Hong Kong, marking a breakthrough for the reform of state-owned commercial banks and a historic step on the road to internationalization. The cooperation between CCB and Zhejiang is of great significance to exploring complementary advantages between banks and governments, promoting the sustained development of local economy and the effective growth of CCB’s business, driving the fast growth of Zhejiang’s economy.

It is learned that CCB enjoys strong competitive advantages in providing financial services for large-scale infrastructure projects. Over these years, Zhejiang Branch has successively supported a great number of key national and provincial projects, which include Xin’anjiang Hydro Power Station, Fuchunjiang Hydro Power Station, Hangzhou Iron & Steel Group, Zhejiang Juhua Group, Zhenhai Refinery, Jiaxing Power Plant, Wenzhou Power Plant, Shanghai-Hangzhou-Ningbo Expressway, Beilun Port, Wenzhou Airport and Jinhua-Wenzhou Railway.