BEIJING (Reuters) – China’s central bank will boost credit support to the real economy while keeping the yuan broadly stable, Governor Yi Gang said in comments published on Sunday, reaffirming the bank’s existing policy targets.
“We will maintain sufficient liquidity, increase credit support to the real sector of the economy,” Yi quoted the central bank as saying during a parliamentary session on Friday.
“Going forward, China has the conditions to maintain a normal monetary policy for as long as possible and keep the value of the currency stable.”
China’s economy rebounded faster than expected in the third quarter, but a stronger recovery in the long term will face persistent constraints related to COVID 19, a prolonged real estate slump and risks of a global recession.
The central bank will keep the yuan largely stable while increasing its flexibility, Yi said.
The central bank will provide 200 billion yuan ($27.6 billion) in special loans to ensure stalled housing projects, Yi said. The scheme was announced by authorities in August, but they did not provide specifics.
China will properly address financial risks in the real estate sector and guide financial institutions to meet developers’ demand for financing within reasonable limits, Yi said.
And also confirmed that China will continue to strengthen financial supervision and prudently contain financial risks.
Between 2017 and 2021, China has disposed of more than 12 trillion yuan in non-performing assets in the banking sector, he said.
($1 = 7.2499 Chinese Yuan)
(Reporting by Jia Tang and Kevin Yao; Editing by Edmund Claman)