Huaxia loans help Shougang

Huaxia Bank has pledged to provide a credit line of 750 million yuan (about HK$697.87 million) this year to subsidiaries of Capital Iron and Steel Group (Shougang). Credit of 200 million yuan would be allocated for loans to ease temporary funding shortfalls and shortages of working capital for urgent new projects by Shougang's subsidiaries, a Huaxia official said. The bank would provide 150 million yuan more in credit to help the firms import raw materials and equipment and fund their export business.

The remaining 400 million yuan credit would be used for acceptance bills and discounts, he said. Shougang, one of the nation's biggest steel-makers, has about 36 subsidiaries.