H-share company Tsingtao Brewery Co has submitted to its principal bankers a proposal to borrow about 100 million yuan (about HK$93 million) for working capital.
The brewery is among the 300 enterprises designated by the central People's Bank of China for priority working capital loans in the next six months.
Company secretary Zhang Xueju said: 'If we are given the loans, we can earmark the listing proceeds, which are now used for daily operations, for the company's development.' He said the company would benefit from a preferential arrangement under which it would be charged the base rate of 10.98 per cent for one-year loans.
Commercial banks usually are allowed to charge up to 10 per cent more than the base rate.
Tsingtao has appointed Bank of China and China Construction Bank as its principal bankers, in accordance with the central bank's policy of propping up the state sector.
'Our relationships with the banks are long-term. They will provide us with financial services as well as information,' Mr Zhang said.
