China central bank to roll over lending tools to spur growth

BEIJING (Reuters) – China’s central bank said on Sunday it will roll over three lending tools to increase support for targeted sectors of the economy.

The People’s Bank of China will roll over a lending tool for supporting carbon emission reduction to the end of 2024, and extend a relending tool for promoting the clean use of coal to the end of 2023, the bank said in a statement on its website.

The central bank will also extend a relending tool for the transport and logistics sector to June 2023, it said.

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

The move to extend the lending tools will help “precisely and effectively implement the 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 jolted by the coronavirus, the central bank has expanded its arsenal of structural policy tools, including relending and rediscount facilities and other low-cost loans.

Outstanding loans made via structural tools amounted to nearly 6.45 trillion yuan ($950.98 billion) at the end of 2022, central bank data showed.

The central bank is poised to ramp up targeted support for troubled 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)