BEIJING (Reuters) -Chinese banks should increase consumer loans “appropriately” and meet reasonable financing demands of high-quality property companies, the country’s banking and insurance regulator said on Friday.
“The CBIRC will urge banking institutions to increase consumer loans appropriately,” the China Banking and Insurance Regulatory Commission (CBIRC) said in a statement.
The regulator will also encourage banks to expand medium-and long-term loan issuance to the manufacturing sector and guide banks and insurance companies to step up support for private firms, the CBIRC) said.
The regulator said it was following the “spirit” of the Central Economic Work Conference held early this month, where China’s leaders pledged to stabilise the economy, expand domestic demand and prioritise consumption recovery.
The world’s second-largest economy faces multiple headwinds. COVID infections are surging following an abrupt relaxation of restrictions, hitting businesses and consumers.
On the property sector, the CBIRC said it would stabilise investment of real estate development loans and guide financial institutions to offer financing support for real estate mergers and acquisitions.
China’s property sector, which accounts for a quarter of the economy, has slowed sharply this year as many developers defaulted on debt obligations and were forced to halt construction of homes.
The CBIRC also said it would encourage banks to step up financing support for strategic emerging industries such as new energy and artificial intelligence.
(Reporting by Kevin Yao, Ziyi Tang and Ella Cao, Editing by Louise Heavens and Jane Merriman)
