China urges immediate implementation of improved monetary policies By Reuters

BEIJING/SHANGHAI (Reuters) – China's central bank and financial regulators have held meetings with key financial institutions, urging them to implement broader policies to support the economy and capital markets.

The People's Bank of China (PBOC) said in a statement on its website on Friday that it urged financial institutions to strengthen credit support for the real economy, and maintain a reasonable growth of total money and credit.

It also called for a strong implementation of interest rate adjustments, and two financing programs created to support the stock market.

This meeting on Wednesday was jointly led by the management of banks and securities in China and the participants included banks, brokerages and financing companies.

The PBOC in late September announced the most aggressive monetary support measures since the COVID-19 pandemic, including interest rate cuts, a liquidity injection of 1 trillion ($140 billion) and other measures to support asset markets and markets.

The central bank also created two monetary policy tools for the first time to support the stock market. It includes an exchange program for brokerages, funds and insurance companies to obtain liquidity, and a refinancing facility to finance stock purchases by listed companies.

Quick implementation of these policies will help China meet this year's 5% growth target, as long-term structural decline and weak consumption remain a challenge.

China's economy grew 4.6% in the third quarter from a year ago, official data showed on Friday.

The PBOC said it will “strengthen interdepartmental cooperation, create synergy and fully implement policies to restore market confidence, improve people's expectations and promote continued economic recovery.”

($1 = 7.1224 lots)