Chinese regulator wants banks to be more supportive of infrastructure investment
Beijing — China’s banking and insurance regulator has asked financial institutions to give more support to infrastructure investment, importers and exporters, and creditworthy companies experiencing temporary problems. In a statement posted on its website at the weekend, the China Banking and Insurance Regulatory Commission also called on the institutions to raise the proportion of medium- and long-term loans to avoid placing strain on borrowers at the end of the month or quarter. The move comes amid a period of uncertainty for China’s economy, in part because of an intensifying trade row with the US. China almost quadrupled the value of fixed-asset investment projects approved in July from the previous month as it looks to accelerate infrastructure spending. The regulator called on banks and insurers to address "weak points" in China’s infrastructure sector and co-operate with local governments to identify their needs but be careful about raising their hidden debt levels. It also s...
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