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PBOC Expected To Increase Targeted Lending - Securities Daily

CHINA PRESS

China’s central bank is expected to expand Pledged Supplementary Lending (PSL) in 2023 as it constitutes the "precise and powerful" monetary policy called for by the Central Economic Work Conference, according to the Securities Daily. Given local government debt and pressure on commercial banks net interest margins, policy banks will play an important role in 2023, and the scale of PSL may increase, according to experts cited by the paper. The PSL has helped policy banks support projects in real estate and new infrastructure. The paper said the targeted lending tool supports weak links in the economy, and can effectively guide long-term interest rates down.

MNI Beijing Bureau | lewis.porylo@marketnews.com
MNI Beijing Bureau | lewis.porylo@marketnews.com

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