PBOC To Expand Quota For Policy Financial Tool

The People’s Bank of China is likely to expand the lending quota of policy financial instrument to fund infrastructure projects and spur the economy, China Securities Journal reported citing analysts on Thursday. The tool, implemented by three policy banks, have supported 2700 projects since being launched in 2022, analysts said, noting it has become a key measure to push credit expansion. The PBOC’s targeted relending tools, coordinated with fiscal and industrial policies, will be strengthened to help lower funding costs for key and weak sectors, meanwhile the central bank would introduce new facilities for agriculture, small businesses, tech innovation and aged care, the analysts said.