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PBOC Launches Relending Facility To Support Equipment Upgrades

MNI (Singapore)

The People’s Bank of China has launched a relending facility worth more than CNY200 billion to help manufacturers and SMEs upgrade their equipment, the China Securities Journal reported citing a statement on PBOC website. The interest rate for qualified firms will be no higher than 3.2%. Analysts expect additional new structural policy tools to be launched as they can precisely inject liquidity to certain sectors without flooding the market with excessive liquidity, the newspaper said. As of June, the PBOC had launched ten structural tools totaling CNY5.4 trillion, which may have been leveraged multiple times in the form of credit, the newspaper said.

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