REPEAT: MNI: PBOC Expands SME Credit Support On Econ Slowdown

Repeats Story Initially Transmitted at 10:15 GMT Jan 15/05:15 EST Jan 15

     BEIJING (MNI) - The People's Bank of China will keep policy flexible and

targeted, neither too loos nor too tight, whilst supporting financing aims of

small and medium-sized companies, Ruan Jianhong, the head of the central bank's

statistics department told reporters Tuesday. 

     Here are main points of the briefing:

     --The PBOC will enhance its counter-cyclical moves. Money supply measure M2

saw steady growth in 2018 at 8.1%, the same as in 2017, as the PBOC increased

medium and long-term liquidity provision at what it called 'a proper pace'. The

increase of bond financing effectively offset a decrease in off-balance sheet

funding, which boosted M2 growth, Ruan said. 

     --Soft M1 growth was attributed to a fall in cash demand as third party

payment platforms and money market funds saw rapid growth, Ruan said, noting

weak sales in the property market also contributed to the reduction of corporate

current account deposits. But Ruan stressed soft M1 growth does not represent

the change of total liquidity amount. 

     --Current total social finance growth has been moderate, as credit support

to the real economy strengthened at a notable pace and bond financing increased.

The TSF slowdown in 2018 was due to slower corporate credit demand related to

funding vehicles, whilst SOEs weighed down by a heavy debt burden has reduced.

The central bank will further improve the transmission of monetary policy,

optimize the credit structure and keep TSF growth at s proper pace, Ruansaid. 

     --The PBOC will guide financial institutions to further support SMEs, Ruan

said. Credit provision to SMEs has seen continuous growth and financing cost

have fallen moderately due to targeted measures.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com