The People’s Bank of China (PBOC) has sought to assuage market concerns about recent financial volatility in the wake of a renewed round of COVID-19 lockdowns in China.
“PBOC is paying close attention to the recent emergence of some volatility on financial markets, mainly due to the impacts of investor moods and sentiments,” said the Chinese central bank in an official statement placed on its website on 26 April.
“PBOC will expand the intensity of stable monetary policy support for the real economy, maintain rationally ample liquidity, and expedite the healthy and stable development of financial markets.”
PBOC pointed in particular to support for industries and micro, small and medium-sized enterprises and individual industrial and commercial registrants who have been severely affected by the COVID-19 pandemic, as well as support for agricultural production and energy supply.
“[We] are providing tech innovation re-loans and financial inclusion aged-care special re-loans, and adding a further 100 billion yuan in re-loans to support the development and usage of coal and strengthen energy storage,” said PBOC.
“[We] are increasing small re-loans to support agriculture and small business and special re-loans for civil aviation.”
The Chinese central bank said that at present China’s economic fundamentals are sound, and that the potential for endogenous economic growth is “huge.”