That People’s Bank of China governor Yi Gang allegedly said the central bank will nudge lenders to increase lending to the infrastructure, manufacturing and real estate sectors better support the economy.
Yi promised in a video address at a meeting of central bank governors of the Group of 20 countries to “accelerate the implementation of prudent monetary policy and do more to help the economy.” reported Bloomberg. China’s consumer prices are “basically stable,” he added.
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boost growth: The governor said the central bank will focus on supporting infrastructure construction and will encourage banks to lend to companies to help them upgrade manufacturing facilities.
The PBoC will ensure faster lending to speed up the delivery of stalled housing projects to promote the healthy and stable development of the real estate sector, the report said, citing a statement. Credit growth picked up more-than-expected in September after the government increased support for infrastructure investment and took steps to boost demand for housing, it said.
inflation: China’s consumer inflation for September was subdued as lockdowns continued to hurt spending habits, while soft commodity prices kept producer inflation under control, reported Bloomberg. The consumer price index rose 2.8% year-on-year in September, the report said.
Next week, the PBoC is expected to stop withdrawing money through medium-term loans for the first time in three months, the report said.
price action: That Global X MSCI China Financials ETF CHIX has lost over 24% since the beginning of the year while the SPDR S&P China ETF GXC has lost over 34% over the same period.
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