PBOC's Renewed PSL May Support Housing Project Delivery - Caixin

The People’s Bank of China’s recent relaunch of its pledged supplementary lending program may provide funds to ensure the delivery of unfinished housing projects, Caixin reported. The market had expected the return of PSL as policymakers had announced CNY1.6 trillion of policy bank-backed financial instruments to boost infrastructure and ensure housing project delivery but without specifying the funding source, said Caixin. The previous use of PSL funding to deliver underground pipeline and water conservancy projects suggests it may be used to help fund infrastructure construction, Caixin said citing CITIC Securities analysts who expect larger scale use of PSL. The PBOC issued a net CNY108.2 billion of PSL to three state-owned policy banks in September, after pausing it for two and a half years.