PBOC Pushes for Expansive Economic Policies

China's central bank and financial regulators are calling on financial institutions to implement expansive policies to support the economy. They highlighted the need for increased credit support and prudent interest rate adjustments. Stock market-supporting funding schemes were also discussed with participants including banks and brokerages.

China's central bank, the People's Bank of China (PBOC), along with financial regulators, has convened pivotal meetings with key financial institutions. During these discussions, they emphasized the urgent need to implement expansive policy measures aimed at bolstering the nation's economy and enhancing the capital markets.

The PBOC issued a statement urging participants to increase credit support for the real economy and to ensure reasonable growth trajectories in the total amount of money and credit. This aligns with the bank's broader objective to stabilize the economic landscape.

Additionally, the bank called for a solid approach to interest rate adjustments while highlighting two funding schemes specifically designed to support the stock market. These initiatives were deliberated in a session attended by representatives from banks, brokerages, and fund companies.

(With inputs from agencies.)