Bank of Zhengzhou Provides All-Round Support for the Development of Henan’s Real Economy

On the production line at Henan OrientalMaterials Co., Ltd. in Zhengzhou Airport Economy Zone, a batch of high-purity sputtering targets is being manufactured at an accelerated pace for delivery to leading domestic chip manufacturers.

Henan OrientalMaterials Co., Ltd. is a national-level key “little giant” enterprise that uses specialized and sophisticated technologies to produce novel and unique products. The enterprise is pushing forward the construction of a local integrated circuit industrial park and planning a semiconductor R&D and production base in Hong Kong. However, the combination of R&D, capacity expansion and stocking up to fulfill high-value orders has resulted in temporary strain on its working capital.

The technology finance team at Bank of Zhengzhou learned about the situation during a field visit. Instead of following the conventional practice of focusing on collateral, the team conducted a comprehensive assessment based on the enterprise’s core patents, its customers’ standing and the industry’s outlook. Based on the enterprise’s outstanding credentials in technological innovation, the bank granted an unsecured loan under its “Zhuanjingtexin” loan program for specialized, sophisticated, distinctive and innovative enterprises. With the funds in place, Henan OrientalMaterials Co., Ltd. has gained firmer footing in advancing the development and domestic production of key materials.

This is only one example of Bank of Zhengzhou’s services for the real economy. From production lines and laboratories to township-level agricultural service outlets, Bank of Zhengzhou channels credit funds precisely to every segment of the real economy. Its technology finance business gives greater weight to patents than to physical assets when assessing enterprises. In inclusive finance, digital processes reduce the need for enterprises to make in-person visits. To serve agriculture, rural areas and farmers, the bank has established financial service outlets in townships.

As a local financial institution, Bank of Zhengzhou has always developed in tandem with Henan’s economy. Going forward, aligned with the overall plan for building a modern Henan, the bank will update and optimize its tailored financial products for industrial development, financial inclusion and rural development, and direct more financial resources toward key segments of the real economy. (Written by Li Yinan)