Bank loans investigated
27 May 2004
China's banking regulator said it would investigate loans for calcium carbide and ferroalloy projects amid concerns of over-investment and construction duplication in the industries. The China Banking Regulatory Commission's (CBRC) inspection follows an order from the State Council in Beijing calling for a consolidation of enterprises in the high polluting and high energy consumption sectors. By 2005 production capacity in the two industries is expected to be double the actual market demand, state media reported. Many manufacturers have expanded capacity in recent years in pursuit of continually rising profits, prompting concerns of overcapacity and worries about pollution, the report said.
