Wendy Zhang/ Shanghai Daily news

The People's Bank of China's Shanghai headquarters announced yesterday the issuance of new credit guidelines in an effort to manage risk and support economic development in the city.
Financial institutions in the city are required to draw up detailed policies according to the guidelines, which divide borrowers into three categories: those deserving credit, those to be approached cautiously and those to be denied loans.
Industries and companies with good performance and social influence will get loan support, with top priority going to the modern service and advanced manufacturing industries, the high-tech sector and medium and small-sized enterprises. The credit rules will conform to national policies to boost employment, expand consumption, support the 2010 World Expo and to establish a new socialist countryside.
Financial institutes will take a cautious attitude in extending loans to industries and companies with excessive loan-growth histories, investments and capacities or those subject to potential risks. Loans will not be extended to industries and companies which are restricted, facing ouster or otherwise discouraged by the government.