While companies have sped up producing the key items required to fight the novel coronavirus outbreak, Shanghai has announced 5 billion yuan ($720 million) in emergency financing to support production.

Initiated by the Shanghai Municipal Commission of Economy and Informatization, the China Development Bank Shanghai branch and Bank of Shanghai will be responsible for providing the financing. The financing will be used for the production of epidemic prevention and control items including face masks, protective clothing, goggles and diagnostic kits. Apart from supporting companies to purchase necessary raw materials, the financing can also be used to renovate equipment and deliver emergency supplies.

The two banks have set up a special examination and approval mechanism for companies applying for such financing, which includes project loans and working capital loans. Favorable loan rates can be provided based on the banks' approval.