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China to push supportive monetary policy as financial risks ease: central bank chief
- PBOC governor Pan Gongsheng says local debt has fallen and number of high-risk small and medium banks has ‘nearly halved’ from peak
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China is gradually resolving a series of financial risks and will press on with a supportive monetary policy to ensure an economic recovery, the country’s central bank chief said on the weekend.
In an interview aired on Saturday, People’s Bank of China (PBOC) governor Pan Gongsheng told state broadcaster CCTV that the number of local government financing platforms and the level of outstanding debt had continued to fall.
Local government financing platforms are companies that borrow on behalf of provinces and cities, mainly to finance infrastructure projects such as roads and ports.
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The maturing debt of “most” of these financing platforms had either been extended, restructured or replaced, Pan said, adding that financing costs for local government debt had fallen “significantly”.
He also said the number of high-risk small and medium-sized banks had “nearly halved from the peak”.
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The central bank will aim to guide “reasonable” growth of credit and the steady decline of financing costs for companies and households, and maintain the “basic” stability of the yuan exchange rate.
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