Central China's Hunan Province will set up a special fund of four million yuan (0.48 million US dollars) this year to support more domestic enterprises to invest outside China.

Sources from Hunan provincial department of commerce said recently that the special fund will be used to offer pay-interest loans and recognizance to those provincial enterprises planning to expand business overseas.

In addition, the provincial department will simplify relevant approval procedures of key overseas investment projects this year. The Import and Export Bank of China also plans to offer favorable loans to those domestic enterprises.

Currently, there are a total of 41 Hunan-based domestic enterprises with branches abroad, covering different fields like electrons, textile, mechanism and agriculture. The total overseas investment of these enterprises hits 94.44 million dollars.