BEIJING – China’s new loans have reached nearly 7 trillion yuan ($988 billion) in the first quarter of this year as the country steps up financial support to shore up the virus-hit economy, according to a senior banking official.

This compares with the 5.81 trillion yuan of new yuan-denominated loans in the same period last year.

Zhou Liang, vice chairman of the China Banking and Insurance Regulatory Commission, revealed the figure at a press conference Friday, noting that the increased new loans have greatly supported the real economy in a time when the global COVID-19 pandemic has given rise to economic recession risks and brought external shocks to China’s economic and social development.

Liu Guoqiang, vice governor of China’s central bank, said at the press conference that for the next stage, China’s prudent monetary policy will be pursued with more moderate flexibility, and more attention will be paid to supporting the recovery of the real economy.

The central bank will keep market liquidity reasonably sufficient to meet practical demands and avoid either a cash shortage or soaring inflation, and that the increase in M2 money supply and aggregate financing should match or be slightly higher than the nominal GDP growth, he said.

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Volkswagen says ready to restart Mexico operations on June 15

MEXICO CITY (Reuters) – The Mexican unit of Germany’s Volkswagen AG said on Monday the automaker was ready to restart operations in the states of Puebla and Guanajuato on June 15 after activity was idled in late March due to…

Energy bills to fall by up to £95 a year for millions of households

Around 15 million households will see their gas and electricity bills reduced by up to £95 after the energy regulator reduced its price cap. Ofgem said the new cap will mean suppliers pass on savings from lower wholesale energy prices…

Norwegian Air blames £134m loss on Boeing 737 Max grounding

The troubled budget airline, Norwegian, has reported another year of losses – blaming the worldwide grounding of the Boeing 737 Max after two fatal crashes, and issues with Rolls Royce engines fitted to its Boeing 787 aircraft. Norwegian has a…

New York restaurant group lays off around 2,000 people

San Francisco (CNN Business)Esteemed restaurant company Union Square Hospitality Group is slashing its workforce by 80% and laying off around 2,000 people in the wake of coronavirus-related restaurant closures. The cuts — which will affect employees in both the company’s…