The People's Bank of China calls on banks to increase loans

China is calling on banks to increase loans to combat the weakest growth since the beginning of 2020.

The People's Bank of China has given "backdoor guidance" to large public and regional banks to provide more loans to companies and households. According to a knowledgeable source, the amount of loans the bank gave in the first two weeks of the year was lower than in 2021.

The People's Bank of China continues to underline with bold lines the warning that Xi Jinping's administration should bring stability to the world's second largest economy, on the eve of a significant seat change.

Due to the collapsed real estate market, falling investments and the slowing Chinese economy due to the weakening consumer spending due to Kovid, the Central Bank has already reduced interest rates and stated that it may take further measures to increase demand.

By taking the decision of monetary expansion, China was separated from leading economies such as the USA, where the FED said that it would increase interest rates, and became the focus of attention of global investors. In the country, where investors took positions according to the further expansion of the Central Bank, the shares of Chinese banks and real estate companies rose rapidly, while government bonds fell.