The banks chinese must increase “appropriately” consumer lending and meeting the reasonable financing demands of high-quality real estate companies, the country’s banking and insurance regulator said on Friday.
“CBIRC will urge banking institutions to increase consumer lending appropriately”the China Banking and Insurance Regulatory Commission (CBIRC) said in a statement.
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The regulator will also encourage entities to expand the issuance of medium- and long-term loans for the manufacturing sector and will guide banks and insurance companies to increase support for private companies.
The regulator said it was following the “spirit” of the Central Economic Work Conference held earlier this month, in which Chinese leaders pledged to stabilize the economy, expand domestic demand and prioritize the recovery of consumption.
The world’s second largest economy is facing multiple headwinds. COVID infections are skyrocketing after a sharp relaxation of restrictions, affecting businesses and consumers.
Regarding the real estate sector, the CBIRC said it will stabilize the investment of real estate development loans and guide financial institutions to offer financial support to real estate mergers and acquisitions.
China’s real estate sector, which accounts for a quarter of the economy, has slowed sharply this year as many developers defaulted on their debt obligations and were forced to halt home construction.
The CBIRC also said it will encourage banks to step up financial support for strategic emerging industries such as new energy and artificial intelligence.
Source: Reuters
Source: Gestion
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