China to lend support and insurance protection for flood-hit areas

China's Banking and Insurance Regulatory Commission said that financial institutions who have suffered due to the flood will not be allowed to cut credit lines to the companies who have good development prospects but whose operations were suspended due to the floods. They also announced measures to increase credit and lending support. Also, insurance protection was announced for areas hard hit by the floods. 

Heavy floods sweep through China 

China has been hit by the worst flood in decades. The country is still trying to battle the damage caused by the flooding. Most cities and provinces have declared red alert. The warning on Huai river has been moved from level III to level II, with fear of potential downpours. The central city of Wuhan, Nanjing and three provinces on the eastern and south eastern part of the country have suffered the most. The water resources ministry reportedly said, floods are occurring at the same time at Yangtze river, Huai river and Tai lake. The flood prevention situation is severe. 

Read: China Floods: Millions Of People Affected, Warning Of 'extremely Heavy' Rainfall Issued

Reports suggest that the situation worsened when one of the three dams in Poyang lake located in the Jiangxi Province burst due to heavy rain. This led to the accumulation of floodwater. This affected 15 nearby villages, creating a direct impact on 8,000 people. 

Read: China Blasts Dam To Release Floodwaters As Death Toll Rises

The floods have destroyed homes and impacted millions of people. Analysts suggest that the economy has been hard hit by the floods, especially construction, steel and cement demand. Analysts also suggested some loss of momentum after a stronger than expected bounce in the second quarter. 

Read: Floods Kill 14 In China As Water Peaks At Three Gorges Dam

Also read: Summer Rains In China Destroy Supply Chains; Affecting The Production Of PPE

(Image Credits: AP)