China Development Bank Issues 28.54 Billion Yuan in Special Relending to Support Foreign Trade SMEs in Q1

China Development Bank (CDB) has stepped up efforts to support small and medium-sized enterprises (SMEs) engaged in foreign trade, issuing 28.54 billion yuan of special relending for stabilizing foreign trade in the first quarter of this year. This initiative has benefited more than 6,500 foreign trade SMEs (times), with the weighted average interest rate for borrowers lower than the national average interest rate of newly issued inclusive micro and small loans in the same period, effectively easing their financing difficulties and high costs, and helping them stabilize orders, expand markets and preserve jobs.

Xinhua News Agency reported that relending refers to a business model where policy-based financial institutions provide wholesale funds to small and medium-sized banks, which then re-lend the funds specifically to support SMEs. This model combines the policy and capital advantages of policy-based financial institutions with the resource and human advantages of commercial banks, jointly helping to expand financing channels and reduce financing costs for SMEs.

To better implement the policy of stabilizing foreign trade, CDB has established a special working group and improved the special working mechanism, taking relending as an important means to serve foreign trade SMEs. It has coordinated special resources and carried out extensive interbank cooperation to ensure the efficient use of funds and provide high-quality financial services for the development of foreign trade SMEs.

People’s Daily noted that the average interest rate of newly issued inclusive micro and small loans nationwide in the first quarter of this year was 3.64%, 0.19 percentage points lower than the average rate for the whole of 2025. The weighted average interest rate of CDB’s special relending for stabilizing foreign trade is lower than this level, further reducing the financing burden of foreign trade SMEs.

While supporting foreign trade SMEs through relending, CDB has also set up direct loan quotas to increase support for key areas of stabilizing foreign trade and foreign investment. This dual support model has effectively covered the financing needs of different types of foreign trade enterprises, providing targeted financial support for the stable development of China’s foreign trade.

China Financial News reported that the special relending has played a significant role in helping foreign trade SMEs tide over difficulties. For example, a household appliance enterprise in Dongguan, which exports all its products to markets such as the United States, Canada and Germany, received 1 million yuan of preferential interest rate loans through Dongguan Bank with the support of CDB’s special relending, helping it purchase raw materials and stabilize production.

Looking ahead, CDB will continue to take relending as an important starting point to serve the national strategy and promote inclusive finance. It will focus on serving the real economy, actively guide cooperative banks to increase support for SMEs in key areas such as foreign trade and manufacturing, and strive to improve the adaptability and accessibility of financial services to escort the growth and development of SMEs.