China’s central bank chief Yai Zhang has pledged to stabilize the credit supply and boost funds to support smaller companies and the real economy, after both credit and economic growth slowed in July. In its statement after a meeting with banks, the bank stated that it will maintain stable monetary policy.

According to Bloomberg, Yai stressed that the People’s Bank of China will basically match the expansion of money supply and social financing with nominal economic growth, while strengthening the credit structure to encourage more financing for technological innovation, green development and small businesses. He also called for efforts to reduce real lending rates and financing costs for small businesses.

This meeting comes after new credit grew at the slowest pace since February 2020 during July, supported by a sharp slowdown in shadow banking, government bond issuance and tighter restrictions on financing real estate developers.

follow us

Facebook:      Lebanon Magazine