China’s banking and insurance regulator has told the country’s finance institutions to increase their support for infrastructure investment projects, importers, exporters and creditworthy companies with temporary cash-flow problems, Reuters reports.
The statement by the China Banking and Insurance Regulatory Commission, which was posted on the regulator’s website on Saturday evening, appears to be a reaction to the growing uncertainty over China’s economic performance. Beijing has been accelerating infrastructure investment with the aim of supporting economic growth, with the value of fixed-asset investment projects approved in July four times higher than the previous month.
The statement also ordered financial firms to hand out more medium- and long-term loans, so that borrowers do not face pressure to repay at the end of the month or quarter. They should also be careful not to “blindly” withdraw funding from companies that have good credit records but are facing “temporary operational difficulties.”
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