China To Revitalise Outstanding Loans

Chinese financial regulators will focus on revitalising inefficient financial resources, as 80% of all loans in China need to be recycled and reinvested every year, said Lu Lei, deputy director at the State Administration of Foreign Exchange. The balance of yuan loans reached CNY236.42 trillion by end-November, according to data from the central bank. The effective revitalisation of these loans can support economic growth, even with smaller increases of new money and credit, said Lu. More credit will support the development of technology, green, inclusive elderly care, and digital finance, while loans to real estate and local government financing vehicles, which have been heavily invested in the past, would decline, said Lu. (Source: 21st Century Business Herald)