China reaffirms that it will step up support for the real economy


BEIJING, Oct 30 (Reuters) – China’s central bank will step up credit support for the real economy while keeping the yuan stable, Governor Yi Gang said in comments on Sunday, reaffirming the bank’s existing policy goals .

“We will maintain reasonably adequate liquidity, increase credit support to the real economy,” Yi said in a central bank statement during a parliamentary session on Friday.

“Going forward, China has the conditions to maintain normal monetary policy for as long as possible and maintain currency value stability.”

China’s economy rebounded at a faster-than-expected pace in the third quarter, but a stronger longer-term recovery will be tested by lingering COVID-19-related headwinds, a protracted housing crisis and recession risks world.

The central bank will maintain the stability of the yuan while improving its flexibility, Yi said.

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

China will properly resolve financial risks in the real estate sector and guide financial institutions to meet real estate developers’ financing demand within reasonable limits, Yi said.

Yi also reiterated that China will further strengthen financial supervision and carefully reduce financial risks.

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)

Reporting by Ziyi Tang and Kevin Yao; Editing by Edmund Klamann

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