China economic news

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Added On June 11, 2019

Now Let's take a look at some economic news in China.
 
Up first, China will continue to provide liquidity support to small lenders.
 
CHINA'S FINANCIAL AUTHORITIES STRESSES STABLE INTERBANK LENDING TO SMALL BANKS
 
According to an online statement by the People's Bank of China Sunday, the country's major lenders, including six major state-owned commercial banks and 12 joint-stock banks, vowed to ensure stable interbank lending to small and medium-sized banks.
 
The move came after fluctuations in the interbank market were spotted over the past few days.
 
The People’s Bank of China, the country's central bank, will continue to leverage various monetary policy tools to ensure reasonable and ample liquidity in the financial market.
 
Concerns over credit risks of the country's small banks rattled the interbank market after the takeover of the Inner Mongolia-based Baoshang Bank by regulators last month.
 
Authorities reiterated that the takeover was a single case, and risks in the country's small and medium-sized banks are under control.
 
China has stepped up targeted support to the country's small lenders this year in a bid to boost lending to the real economy, with a targeted cut in reserve requirement ratio for some small and medium-sized banks effective on May 15. 
 
RISKS IN CHINA'S SMALL BANKS CONTROLLABLE  
 
The China Banking and Insurance Regulatory Commission (CBIRC) said on Sunday that  China's small and medium banks have relatively ample liquidity and their risks are under control.
 
According to the CBIRC, while a few small banks failed to release their annual reports on time, those were just special cases caused by various reasons such as change of auditors. 
 
The CBIRC said regulatory authorities will urge the companies to accelerate the auditing process and disclose their financial results as soon as possible.
 
The country's financial regulators have warned and punished individual institutions that violated rules.
 
AGRICULTURAL BANK OF CHINA STRENGTHENS SUPPORT FOR INFRASTRUCTURE PROJECTS   
 
The Agricultural Bank of China said it will increase financial support for major infrastructure projects in strengthening areas of weakness. 
 
The bank said it will actively participate in the construction of major infrastructure projects in the Xiongan New Area, Guangdong-Hong Kong-Macao Greater Bay Area, and Hainan free trade zone, among others. 
 
The support will be under the premise of not increasing the implicit debt scale of local governments, and in accordance with the principles of controllable risk and commercial sustainability.
 

An official in charge of the bank's corporate operations department said the Agricultural Bank of China's infrastructure loans have grown at an average annual rate of more than 10 percent in recent years.