China’s central bank to curtail pandemic measures to support the economy

The People’s Bank of China (PBOC) is ending anti-covid measures to support the economy, Zou Lan, head of the monetary policy department (MPD) of the PBOC, said at a press conference in Beijing. Against the backdrop of the stabilization of the economic and financial situation in China and the general recovery in demand for loans, commercial banks are showing stability, which means that the support instruments that the Chinese authorities actively introduced in 2020-2021 have achieved their goals, and now they will be withdrawn, he noted.

The volume of lending in the manufacturing sector increased in March by 41.2% compared to the same period last year, lending in the service sector increased by 16.1%, lending to high-tech industries increased by 42.5%, and lending to the sphere increased by 6.4%. real estate, said Zou Lan. “Rejection of the tools of structural PrEP is happening smoothly and in an orderly manner. The withdrawal of the instrument means that the central bank will no longer issue new funds, but already issued assets can continue to be used and the longest period of use can reach 3 to 5 years,” he said.