The People’s Bank of China said it would ensure the private sector received the extra resources it needed to grow, a pledge that came after the central bank made a rare disclosure about meeting with company executives.
(Bloomberg) — The People’s Bank of China said it would ensure the private sector received the extra resources it needed to grow, a pledge that came after the central bank made a rare disclosure about meeting with company executives.
Newly appointed governor Pan Gongsheng met with representatives from eight private firms, including developers Longfor Group Holdings Ltd., CIFI Holdings Group Co. and Midea Real Estate Holding Ltd. to hear about their difficulties and corporate financing needs, the PBOC said in a statement on Thursday.
The PBOC would expand a support tool for private companies’ bond issuance and meet the reasonable financing needs of developers to foster the healthy development of the housing market, Pan said.
Last year, China’s financial regulators widened a bond financing program to about 250 billion yuan ($34.9 billion) for private companies including developers. The PBOC didn’t provide details on what the latest changes would entail.
China’s home sales dropped the most in a year in July, pressuring the government to do more to support the property market, a key component of the world’s second-largest economy. China’s top housing official, Ni Hong, called for stronger efforts to revive the ailing sector last month.
A pro-growth tone signaled last week by the ruling Communist Party’s Politburo — a 24-member policymaking body led by President Xi Jinping — has lifted market sentiment in recent days.
See: China Seen Cutting Banks’ Reserve Ratio in August to Add Cash
Though the outlook remains fragile, with the impact of recent announcements of support yet to be realized and fresh data this week pointing to slumping manufacturing activity and home sales.
–With assistance from Phila Siu and Yujing Liu.
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