Economy
China’s central bank to guide more financial resources to support private sector
© Reuters. FILE PHOTO: Pan Gongsheng, central bank vice governor of the People’s Bank of China, attends a news conference during the ongoing National People’s Congress (NPC), China’s parliament, in Beijing China March 10, 2017. REUTERS/Jason Lee/File Photo
BEIJING (Reuters) – China’s central bank governor pledged on Thursday to guide more financial resources towards the private economy, suggesting refreshed urgency from Beijing to bolster the confidence among private firms as economic momentum weakens.
During a meeting on Thursday with at least eight private firms from sectors including property, aluminium and agribusiness, the People’s Bank of China (PBOC) Governor Pan Gongsheng said the bank would roll out guidelines to support private firms.
Responding to some firms’ requests of broadening bond financing channels, Pan said the central bank would expand debt financing tools for them.
The debt financing tools, dubbed “the second arrow” and supported by PBOC refinancing, were launched in 2018.
“Supporting the development of private firms is the duty of financial departments. It is also an important part of the supply-side structural reform in the financial sector,” a PBOC statement said, citing Pan.
“Financial institutions should actively create a positive atmosphere to support the development and growth of private firms … and increase willingness to lend.”
China last month unveiled a series of policy measures designed to help private businesses after the sector has been bruised by COVID-19 curbs and a wide-ranging regulatory crackdown that targeted industries from technology to property.
The PBOC will support local governments to take the initiative to clear arrears owed to firms, learn about private firms’ financial needs and respond to their concerns and appeals, according to the statement.
As some private property firms still failed to get out of the woods, the PBOC vowed it would meet reasonable financing demand for them and implement differentiated housing credit policies in a precise manner.
China’s property sector has over the past two years been grappling with a severe debt crisis – initially triggered by government moves to rein in ballooning debt – with many developers defaulting on payments as they struggle to sell apartments and raise funds.
Attendees of the meeting included heads of three property firms Longfor Properties , Midea Real Estate Holding, CIFI’s property firm and diary giant Yili Group, aluminium products manufacturer China Hongqiao Group, electrical components manufacturer Chint Group, agribusiness firm New Hope (OTC:) and apparel products manufacturer Hongdou.
To revive confidence among private businesses, head of the economic planner also held several meetings with private firms last month to learn about their operation difficulties.
The cabinet last week also asked the public to report obstacles in the private economy growth.
© Reuters. Russian Central Bank Governor Elvira Nabiullina attends a news conference in Moscow, Russia June 14, 2019. REUTERS/Shamil Zhumatov/File Photo
MOSCOW (Reuters) – Russia’s central bank will need two to three months to make sure that inflation is steadily declining before taking any decision on interest rate cuts, the bank’s governor Elvira Nabiullina told RBC media on Sunday.
The central bank raised its key interest rate by 100 basis points to 16% earlier in December, hiking for the fifth consecutive meeting in response to stubborn inflation, and suggested that its tightening cycle was nearly over.
Nabiullina said it was not yet clear when exactly the regulator would start cutting rates, however.
“We really need to make sure that inflation is steadily decreasing, that these are not one-off factors that can affect the rate of price growth in a particular month,” she said.
Nabiullina said the bank was taking into account a wide range of indicators but primarily those that “characterize the stability of inflation”.
“This will take two or three months or more – it depends on how much the wide range of indicators that characterize sustainable inflation declines,” she said.
The bank will next convene to set its benchmark rate on Feb. 16.
The governor also said the bank should have started monetary policy tightening earlier than in July, when it embarked on the rate-hiking cycle.
© Reuters. FILE PHOTO: Workers walk past an under-construction area with completed office towers in the background, in Shenzhen’s Qianhai new district, Guangdong province, China August 25, 2023. REUTERS/David Kirton/File Photo
SHANGHAI (Reuters) – China’s top planning body said on Saturday it had identified a second batch of public investment projects, including flood control and disaster relief programmes, under a bond issuance and investment plan announced in October to boost the economy.
With the latest tranche, China has now earmarked more than 800 billion yuan of its 1 trillion yuan ($140 billion) in additional government bond issuance in the fourth quarter, as it focuses on fiscal steps to shore up the flagging economy.
The National Development and Reform Commission (NDRC) said in a statement on Saturday it had identified 9,600 projects with planned investment of more than 560 billion yuan.
China’s economy, the world’s second largest, is struggling to regain its footing post-COVID-19 as policymakers grapple with tepid consumer demand, weak exports, falling foreign investment and a deepening real estate crisis.
The 1 trillion yuan in additional bond issuance will widen China’s 2023 budget deficit ratio to around 3.8 percent from 3 percent, the state-run Xinhua news agency has said.
“Construction of the projects will improve China’s flood control system, emergency response mechanism and disaster relief capabilities, and better protect people’s lives and property, so it is very significant,” the NDRC said.
The agency said it will coordinate with other government bodies to make sure that funds are allocated speedily for investment and that high standards of quality are maintained in project construction.
($1 = 7.1315 renminbi)
© Reuters. Russian Central Bank Governor Elvira Nabiullina attends a news conference in Moscow, Russia June 14, 2019. REUTERS/Shamil Zhumatov/File Photo
MOSCOW (Reuters) – Russia’s central bank will need two to three months to make sure that inflation is steadily declining before taking any decision on interest rate cuts, the bank’s governor Elvira Nabiullina told RBC media on Sunday.
The central bank raised its key interest rate by 100 basis points to 16% earlier in December, hiking for the fifth consecutive meeting in response to stubborn inflation, and suggested that its tightening cycle was nearly over.
Nabiullina said it was not yet clear when exactly the regulator would start cutting rates, however.
“We really need to make sure that inflation is steadily decreasing, that these are not one-off factors that can affect the rate of price growth in a particular month,” she said.
Nabiullina said the bank was taking into account a wide range of indicators but primarily those that “characterize the stability of inflation”.
“This will take two or three months or more – it depends on how much the wide range of indicators that characterize sustainable inflation declines,” she said.
The bank will next convene to set its benchmark rate on Feb. 16.
The governor also said the bank should have started monetary policy tightening earlier than in July, when it embarked on the rate-hiking cycle.
Forex2 years agoForex Today: the dollar is gaining strength amid gloomy sentiment at the start of the Fed’s week
- Forex2 years ago
How is the Australian dollar doing today?
- Forex2 years ago
Unbiased review of Pocket Option broker
- Forex2 years ago
Dollar to pound sterling exchange rate today: Pound plummeted to its lowest since 1985
- Cryptocurrency2 years ago
What happened in the crypto market – current events today
- World2 years ago
Why are modern video games an art form?
- Commodities2 years ago
Copper continues to fall in price on expectations of lower demand in China
- Forex2 years ago
The dollar is down again against major world currencies
