Wepon Pharmaceutical Group Co Ltd is granted a credit of 50 million yuan by the Wenling Rural and Commercial Bank on May 18. [Photo/WeChat account: tzfb001]

Wenling, a county-level city in Taizhou in East China's Zhejiang province, will allocate an extra loan of 5 billion yuan ($769.2 million) over the next five years for local enterprises that have won the "government quality awards", local authorities recently announced.

The loan is the first of its kind in the nation.

Award recipients in the city can apply for loans with discounted interest rates for the purposes of technical transformation, upgrading of production capacity and factory expansion. The upper limit of a loan is capped at 100 million yuan.

Authorities at different levels in China have set up the quality awards to honor organizations and individuals in the fields of quality management.

The China Quality Award, which is conferred by the State Administration for Market Regulation every two years, is the highest honor in this regard in the nation.

To date, nine companies in Wenling have won the quality awards conferred by the Taizhou municipal government and 34 have been granted the awards by the Wenling government.

On May 18, two local companies - Wepon Pharmaceutical Group Co Ltd and Zhejiang Sankai Machine & Electric Co Ltd - were granted a credit of 50 million yuan and 30 million yuan respectively.

Zhejiang Sankai Machine & Electric Co Ltd is a company specializing in the R&D, production and sales of power transmissions.

"Going forward, we will continue to deepen government-to-bank coordination, and make financing channels more available for enterprises," said Ruan Jingqing, deputy head of the Wenling bureau of markert supervision.