China's central bank will strengthen loan support and financing support in civil and commercial areas with tailored measures to further stabilize market and expectations, said the central bank chief on Wednesday.
Pan Gongsheng, governor of the People's Bank of China (PBOC), said at a press conference in Beijing that the central bank will step up commercial banks' support in service consumption, elderly care, agriculture, and small, micro and private enterprises.
"We will set up 500 billion yuan (about 69.28 billion U.S. dollars) of re-lending for consumption and pension services, and guide commercial banks to increase credit support for consumption and pension services," he said.
"We will increase the re-lending quota for agriculture and small and micro businesses by 300 billion yuan, which will form a synergistic effect with the policy of lowering the re-lending rate, and support banks to expand lending to agriculture-related, small and micro, and private enterprises," said Pan.
Pan also noted that the PBOC will provide further support for science and technology innovation enterprises in loan and financing channels.
"We will create a risk-sharing tool for science and technology innovation bonds. The central bank will provide low-cost re-lending funds to purchase science and technology innovation bonds, and cooperate with local governments and market-based credit enhancement institutions to share part of the default loss risk of bonds through diversified credit enhancement measures such as joint guarantees, and provide support for the financing of science and technology innovation enterprises and equity investment institutions to issue low-cost, long-term science and technology innovation bonds," he said.
China to further promote credit, financing support in civil, commercial areas: PBOC
