Chinese exporters hit by trade war to get help as Beijing orders banks to lend more
Emphasis also on funding for smaller firms squeezed by deleveraging drive, and for domestic infrastructure projects, in attempt to stabilise growth
Beijing has instructed banks to step up lending to the struggling sectors of the Chinese economy, including exporters hit hard by heavy US tariffs as well as contractors and private enterprises squeezed by lack of access to credit.
In a circular released at the weekend, the China Banking and Insurance Regulatory Commission (CBIRC) vowed to improve the process that guides provision of additional money by the central bank through banks to the real economy, especially smaller firms hit hardest by current economic conditions.
The CBIRC said it would work with local governments and industry associations to help rally support for those exporters most affected by US tariffs.
In addition, banks and insurers were told to increase funding for domestic infrastructure projects so long as this did not increase local government debt.
Demand for funding from local government financing vehicles should be met to prevent cash flow shortages threatening construction projects, the CBIRC said.