China's economy sees stable growth in effective capital supply in H1

14 Aug '22

2 min read

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The first half (H1) of this year witnessed stable growth in effective capital supply in China’s real economy as banks stepped up credit support, according to an official from the China Banking and Insurance Regulatory Commission (CBIRC), who recently told a press conference that yuan loans rose by 13.68 trillion yuan ($2 trillion) in the period—up by 919.2 billion yuan from a year ago.

More lending was directed to small firms and manufacturing. The manufacturing sector received 3.3 trillion yuan worth new loans, 1.6 trillion yuan more than the figure a year ago.

Outstanding inclusive loans to micro and small firms increased by 22.64 per cent year on year (YoY) to 21.77 trillion yuan at the end of June.

More efforts will be made to push more credit to the real economy, including infrastructure and manufacturing, and to improve services for new urban residents, and bolster support for education, healthcare, and elderly care, the official was quoted as saying by official Chinese media.

The banking sector has maintained a stable performance, with a stronger ability to fend off risks and sufficient capital and provision coverage, he said.

Authorities are mulling over a pilot programme in six provincial-level regions to aid in the disposal of bad loans of small and medium banks, he added.

Fibre2Fashion News Desk (DS)

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