BEIJING/SHANGHAI (Reuters) – China’s central bank and financial regulators have held a meeting with major financial institutions, urging them to quickly implement a wide range of policies to support the economy and capital markets.
The People’s Bank of China (Central Bank) said in a statement posted on its website on Friday that it called on financial institutions to strengthen credit support to the real economy and maintain reasonable growth in the aggregate amount of money and credit. .
It also called for reliable interest rate adjustment and two funding mechanisms created to support the stock market.
The meeting, held on Wednesday, was co-chaired by China’s banking and securities regulator and included banks, securities companies, fund companies and others.
In late September, the People’s Bank of China announced its most aggressive monetary policy since the coronavirus pandemic, including interest rate cuts, a 1 trillion yuan ($140 billion) liquidity injection and other measures to support real estate and stock markets. Announced support measures.
The central bank also created two monetary policy instruments for the first time to support the stock market. These include swap programs for brokers, funds and insurance companies to obtain liquidity, and refinance facilities to finance stock purchases by listed companies.
Implementing these policies quickly will help China reach its 5% growth target this year, as a prolonged real estate downturn and sluggish consumption remain a drag on economic activity.
China’s economy expanded by 4.6% in the third quarter from a year earlier, official data showed on Friday.
The central bank will “strengthen cross-sector collaboration, create synergies, and make the most of policies to reinvigorate market confidence, raise people’s expectations, and promote sustainable economic recovery.” said.
(1 dollar = 7.1224 Chinese Yuan)
(Reporting by Shanghai-Beijing Newsroom; Editing by Christian Schmollinger)
