The State Development Bank (SDB) of China has announced it would provide loans to attract more overseas Chinese students to start up business ventures back in China.

The loan fund, to the tune of 2.5 billion yuan (some US$308 million), is intended to help out returned overseas Chinese students who have financial difficulties in launching new ventures, according to Hu Bengang, supervisor-in-chief for information with the bank.

"The fund will be open to all overseas Chinese students worldwide, and Dalian has been chosen as a venue for experimenting with loan grants, with SDB Dalian Branch being selected as the first branch to offer the service," said Hu, at a promotion week activity held in Dalian, a port city in northeast China's Liaoning Province, which aimed at luring Chinese would-be entrepreneurs home.

The interest rate of the loans will be determined according to the rate set by the People's Bank of China, which currently stands at 5.85 percent.

More than one million Chinese have been pursuing advanced studies around the globe, according to He Xian, deputy Chinese Minister of Personnel.