China Development Bank Corp, the country's major policy bank, is to put more than half of its new loans this year into supporting urbanization construction projects.

"We will focus on supporting urbanization and increase lending to projects related to infrastructure construction and social well-being, and enterprises going overseas," Chen Yuan, its chairman, told the bank's annual work conference.

The Chinese government expects that an accelerated urbanization process could release growth potential for the world's second-largest economy over next couple of years.

But many analysts still worry that funding conditions remain challenging.

Last year CDB lent 116.6 billion yuan ($18.7 billion) to support construction of affordable housing projects, accounting for more than 60 percent of total loans extended to such projects by banks, as its total assets increased by more than 1 trillion yuan to 7.27 trillion yuan.

The lender's non-performing loan ratio stood at 0.3 percent by the end of December, marking 31 straight quarters below 1 percent.

Its foreign currency-denominated outstanding loans reached $248.2 billion at the year end, the bank said, describing the quality of those assets as remaining "sound".