China sees stable growth in effective capital supply in first half of 2022

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China sees stable growth in effective capital supply in first half of 2022

This Sept 17, 2020 aerial photo shows the Houhai area in the Nanshan district of Shenzhen, Guangdong province. CHEN YEHUA XINHUA BEIJING - China saw stable growth in effective capital supply in the first half of the year as banks stepped up credit support, an official from the China Banking and Insurance Regulatory Commission said on Friday.

The official said that in the January-June period, Yuan loans increased by 13.68 trillion yuan about US $2 trillion, up 919.2 billion yuan from a year ago.

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More lending was directed towards small firms and manufacturing. Loans for infrastructure construction increased by 11.1 percent from a year ago at the end of June.

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The official said more effort will be made to push more credit to the real economy, including infrastructure and manufacturing, and to improve services for new urban residents, and to support education, health care and elderly care.

The banking sector has maintained a stable performance with a stronger ability to fend off risks and sufficient capital and provision coverage, according to the official.

A pilot program in six provinces is being considered by authorities to help with the disposal of bad loans of small and medium-sized banks, the official said.

The CBIRC will adhere to the principle that houses are for living in, not for speculation, and will meet the reasonable financing demand of developers as well as the rigid and upgraded demand for housing from new residents and young people, according to the official.

The official said that efforts will be made to ensure the completion of houses under construction and to ensure people's livelihoods.