The China-Shanghai Cooperation Organization Demonstration Zone for Local Economic and Trade Cooperation established comprehensive strategic cooperative relations with financial institutions Dec 28.

The SCO demonstration zone management committee singed cooperation agreements with the Qingdao Branch of China Development Bank, the Shandong Branch of the Export-Import Bank of China, and the Shandong Branch of China Export and Credit Insurance Corporation.

The SCO demonstration zone establishes comprehensive strategic cooperative relations with financial institutions Dec 28. [Photo provided to chinadaily.com.cn]

The SCO demonstration zone and the financial institutions will promote cooperation in the areas of infrastructure project financing, collaboration with multilateral financial institutions within the SCO framework and the joint development with overseas industrial parks to promote the coordinated development of infrastructure construction, two-way investment and international trade.

Currently, the SCO demonstration zone is in a critical period of accelerating growth, as a large number of high-quality projects and emerging business types need financial capital and risk protection, said Liu Jianjun, director of the SCO demonstration zone management committee.

The SCO demonstration zone will promote opportunity sharing and win-win cooperation with financial institutions in resource allocation, policy coordination, industry research, investment and financing services and other fields, Zhou said. 

He added that the cooperation will contribute to the zone's efforts in building a world-class investment and financing ecosystem and business environment, and the development of a new platform for international cooperation under the Belt and Road Initiative.

The SCO demonstration zone, approved by the central government to boost economic collaboration with Shanghai Cooperation Organization members, is located in Jiaozhou, a county-level city in Qingdao, Shandong province.

From October 2020 to December this year, the Qingdao Branch of China Development Bank lent 1.15 billion yuan ($180.55 million) to the SCO demonstration zone and Jiaozhou for project construction.

The Export-Emport Bank of China Shandong Branch has supported enterprises and projects in SCO demonstration zone with a total loan amount of about 4.3 billion yuan.

The Shandong Branch of China Export and Credit Insurance Corporation has supported 530 foreign trade and economic enterprises in the zone and Jiaozhou, and supported general trade exports at a sum of 3.79 billion yuan, which is an increase of 13 percent year-on-year.