Xiaomi, Meituan not listed as candidates for coronavirus special loans: central bank

Source:Global Times Published: 2020/2/16 14:28:40

China's smartphone maker Xiaomi opened its second retail shop in downtown Nairobi on Dec. 21, 2019. Photo:Xinhua

Government departments involved in the issuance of special bank loans did not shortlist Chinese smartphone-maker Xiaomi and food delivery company Meituan Dianping as names that are qualified to apply for the loans, which is designed to soften the impact of coronavirus on affected enterprises, China's central bank said on Sunday.

The comment comes after media reports claimed that the two companies are among hundreds of Chinese firms that are seeking to secure funds from a pool of at least 57.4 billion yuan ($8.2 billion) special bank loans, with an interest rate as low as 3.15 percent. 

Xiaomi and Meituan reportedly applied for 5 billion yuan and 4 billion yuan, respectively.

The central bank confirmed that the two companies did file an application. But relevant authorities in Beijing, where the two companies are headquartered, did not list them as candidates because they "did not meet requirements." So far the banks have neither released loans to them.

China's central bank said previously that its Beijing branch, together with local banking and insurance regulators, are confirming the news with local economic planners and industry and information authorities. If a violation is found, the central bank will deal with the situation seriously. 

Xiaomi and Meituan said on Sunday that both of them neither "complete application" nor receive the bank loans.

The People's Bank of China began issuing loans totaling 300 billion yuan to commercial lenders in some provinces on February 10, which include Hubei,  the epicenter of the coronavirus attack, as part of measures to offer credit line support to businesses involved in fighting the coronavirus epidemic. 

Global Times


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