An aerial view of Xiamen. [Photo provided to chinadaily.com.cn]

The Xiamen Supply Chain Collaboration Fund Service Trust has initiated the distribution of its first loans, injecting 288 million yuan ($40.07 million) into the supply chain economy.

This fund is an innovative solution introduced in the city to utilize "fiscal policy + financial tools" to stimulate growth. It offers low-cost financing support to enterprises on the "allow list" of Xiamen's industrial and commercial supply chains, promoting capital expansion and heightened productivity.

The primary objective of the policy's implementation is to enhance and ameliorate the indispensable financing connections and bolster the underperforming sectors of the real economy. Furthermore, it is anticipated to make a substantial contribution to the integrated proliferation of Xiamen's industrial and supply chains.

According to a joint notice issued by Xiamen municipal finance bureau, the industry and information technology bureau of Xiamen, and Xiamen municipal bureau of commerce, the initial scale of the supply chain fund stands at 5 billion yuan. This is divided equally into the industrial enterprise's supply chain sub-fund and the commercial enterprise's sub-fund, each receiving 2.5 billion yuan at a low financing cost of 2 percent or 2.5 percent per annum.

The fund has already started impacting, with 234 enterprises included in the first "allow list" of the industrial enterprise's supply chain sub-fund and 240 enterprises in the commercial enterprise's supply chain sub-fund.