MNI BRIEF: China To Guide Banks To Support Consumption

China’s banking regulator will guide lenders to increase lending to consumers for spending on big-ticket items and for the consumer service sector, officials at the National Administration of Financial Regulation told reporters on Thursday in a briefing.

NAFR will encourage banks to shore up purchases of home appliances, automobiles and other big-ticket items, officials said, noting that the recovery in consumption is still not solid despite positive signs. (See MNI: China Seen Holding Off From Big Fiscal Stimulus)

Regulators will focus on financial services supporting key sectors, such as private companies, the green transition of manufacturing, hi-tech and affordable homes, officials said. Lenders will optimise services for overseas operations by Chinese auto makers, they said.