China's central bank to renew lending tools to boost growth

BEIJING, Jan 29 (Reuters) – China’s central bank said on Sunday it would renew three lending tools to boost support for targeted sectors of the economy.

The People’s Bank of China will renew a loan tool to support carbon emission reduction until the end of 2024 and extend a loan tool to promote clean coal use until the end of 2023, the city said. bank in a statement posted on its website.

The central bank will also extend a lending tool for the transport and logistics sector until June 2023, she said.

Some foreign financial institutions will be included in the scope of the carbon reduction tool, the central bank said.

The decision to expand lending tools will help “accurately and effectively implement prudent monetary policy, guide financial institutions to increase support for green development and other areas,” the central bank said.

Since 2020, when the world’s second-largest economy was first rocked by the coronavirus, the central bank has expanded its arsenal of structural policy tools, including lending and rediscounting facilities and other low-cost lending.

The outstanding amount of loans granted through structural tools stood at nearly 6.45 trillion yuan ($950.98 billion) at the end of 2022, according to central bank data.

The central bank is set to step up targeted support to struggling sectors through its structural policy tools, according to policy sources and analysts.

($1 = 6.7825 Chinese yuan renminbi)

Reporting by Kevin Yao; Editing by Alison Williams

Our standards: The Thomson Reuters Trust Principles.

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