One of China’s big state-owned banks has seen its balance of medium-and-long term loans to the Chinese manufacturing sector surge, amidst a push from regulators for the financial sector to focus on credit for the real economy.
At the end of October the medium-and-long term manufacturing sector loan balance of Postal Savings Bank of China (PSBC) had seen growth of more than 30% since the start of the year, according to a report from China Securities Journal.
PSBC said that its head bank and tier-1 branches had formed a work leadership team to support economic stabilisation measures launched by the Chinese central government, with key measures including strengthening of support for the growth of the manufacturing sector.
At the same time PSBC has released a work plan for using medium-and-long term loans to support the manufacturing sector and using re-loans for capital equipment upgrades.
This plan includes the setting of work targets, the formulation of work measures and the provision of support policies, as well as including key sectors in active credit support areas and expanding the approval authorisations of branches.