Tsinghua-HSBC Program and China Foundation for Poverty Alleviation have joined forces in launching a Microcredit Foundation Pilot Program in Shangyi County of Zhang Jiakou City in North China's Hebei Province. The founding ceremony was held on April 17, 2008, attended by Tsinghua SEM Professor Li Zinai, HSBC representative Li Huiqian, Secretary of China Foundation for Poverty Alleviation Wang Xingzui, Deputy Secretary of the Foundation Liu Dongwen, and Deputy Director of Office for Poverty Alleviation of Hubei Province Zhao Fenglou.

With an objective of providing financial service to farmerswith low income and promoting the innovation in poverty-alleviation mechanism, Tsinghua-HSBC Program signed an agreement with China Foundation for Poverty Alleviation to donate 1 million RMB to establish a Microcredit Pilot Foundation on November 9, 2007. It aims to provide financial assistance to poor people in the pilot region through microcredit service; help the farmer in pilot region enhance their self-reliance and self-developing capabilities by providing management, training and technology service for them; realize the fund's sustainable development by effective management; and provide reliable data for Financial Development in China's Rural Areas Research Program and serve as a social practice base for Tsinghua SEM students.

(Professor Li Zinai Delivers Address at the Founding Ceremony)

The operating institution for the fund is Shangyi Farmer Service Agency, established on December 5, 2007 by China Foundation for Poverty Alleviation. Since its first distribution in February 2008, the Agency has distributed 44 loans with a total of 176,000 RMB, covering 4 towns and 5 villages. The agency also provides non-financial service to local farmers such as market information, public knowledge, and skill training, etc..

The principle of 1 million RMB invested by Tsinghua-HSBC will provide finance aid to 250 rural families at least. All parties involved will make further efforts to expand the foundation to benefit more poor people, as well as to conduct further research on microcredit and financial market in Chinese rural areas and propose constructive suggestions and measures for its development.