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China central bank reaffirms it will step up support for real economy

Published 10/29/2022, 11:25 PM
Updated 10/29/2022, 11:30 PM
© Reuters. FILE PHOTO: Paramilitary police officers stand guard in front of the headquarters of the People's Bank of China, the central bank (PBOC), in Beijing, China September 30, 2022. REUTERS/Tingshu Wang/File Photo
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BEIJING (Reuters) - China's central bank will step up credit support for the real economy while keeping the yuan basically steady, Governor Yi Gang said in comments published on Sunday, reaffirming the bank's existing policy objectives.

"We will keep liquidity reasonably ample, increase credit support to the real economy," Yi was quoted by a central bank statement as saying during a parliament session on Friday.

"Going forward, China has the conditions to maintain a normal monetary policy as long as possible and maintain the stability of the currency's value."

China's economy rebounded at a faster-than-anticipated clip in the third quarter but a more robust revival in the longer term will be challenged by persistent COVID 19-related curbs, a prolonged property slump and global recession risks.

The central bank will keep the yuan basically stable while enhancing its flexibility, Yi said.

The central bank will make 200 billion yuan ($27.6 billion)in special loans to ensure the delivery of stalled housing projects, Yi said. The scheme was announced by authorities in August but they did not give specifics.

China will properly resolve financial risks in the real estate sector and guide financial institutions to meet property developers' demand for financing, within reason, Yi said.

Yi also reaffirmed that China will further enhance financial supervision and prudently curb financial risks.

© Reuters. FILE PHOTO: Paramilitary police officers stand guard in front of the headquarters of the People's Bank of China, the central bank (PBOC), in Beijing, China September 30, 2022. REUTERS/Tingshu Wang/File Photo

Between 2017 and 2021, China disposed of non-performing assets in the banking sector worth more than 12 trillion yuan, he said.

($1 = 7.2499 Chinese yuan renminbi)

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