Luoyang, one of the ancient Chinese capitals and a major industrial base in central China, is expected to receive 52.6 billion yuan (about 6.77 billion US dollars) from 12 banks, in order to build a new manufacturing center.

These funds will be mainly invested in industries that are compatible with the policies of the central government and have broad market prospects, according to official sources.

These promising industries include new and high technology sectors, farming, commercial facilities and infrastructure projects, the sources said.

Between 1954-59, China built up 156 major industrial projects with financial and technical assistance from the former Soviet Union, seven of which were located in Luoyang, including the FirstTractor Plant.

In recent years, however, the former industrial base and the state-owned industries have lagged behind in China's booming economy as many coastal areas adopted more open measures and attracted more foreign investment.

Source: Xinhua