More China stimulus, just a different angle
With a slowing economy (GDP growth recently printed 6.5%) an unfolding trade war, a lack of credit for non-state owned companies, and not to mention difficulties raising equity amidst a share market rout, China’s private-owned company sector has been doing it real tough.
The latest indicator of this is the banking regulator’s directive to double the amount of loans provided to private businesses.
According to the Asia Times this week, Guo Shuqing who is Chairman of the China Banking and Insurance Regulatory Commission said that no less than 50% of banks’ new corporate loans will be given to private enterprises, over the next 3 years.
This provides further guidance on where the Communist Party expects 1.95 Trillion Yuan, or US$290 billion in lending stimulus and Bank bail-outs, so far this year to go.
Mike.
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