The China Development Bank (CDB), China's policy bank, has granted a line of credit totaling 5.8 billion yuan (740 million U.S. dollars) to Chinese carmaker Chery for research and development of new auto models during the 2006-2010 period.

The CDB and the Chery Automobile Co. Ltd., based in east China's Anhui Province, signed an agreement on the line of credit at the Anhui provincial capital Hefei on Monday.

With the loan, Chery is expected to improve its capabilities in independent research and development of new models and expand its production capacity.

To date, the CDB has loaned Chery 11.2 billion yuan to support the carmaker's development of vehicle marques.

Chery sold 300,000 cars this year, giving it the fourth highest sales in China.

Source: Xinhua