China c.bank says economic fundamentals sound, pledges liquidity

Published on 18 Jun 2020. | Source: thestar.com.my

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SHANGHAI:China's economic fundamentals remain sound and its financial markets are stable overall, the central bank governor said on Thursday, adding that the bank would keep liquidity levels reasonably ample in the second half of the year.

Yi Gang said the People's Bank of China had guided financing costs lower this year, when he expects new loans to hit nearly 20 trillion yuan, and total social financing to increase by more than 30 trillion yuan.

The bank's balance sheet remains stable around 36 trillion yuan ($5.08 trillion), he added, speaking at a financial forum in Shanghai. ($1=7.0867 Chinese yuan)..

Meanwhile, Guo Shuqing, chairman of the banking and insurance regulator, said at a financial forum in Shanghai that China will not adopt "flood-like" stimulus nor negative rates.

It takes time for global supply chains to recover, high inflation could come back and global economies have to re-think how to exit from massive easing measures that were rolled out in response to the coronavirus pandemic, Guo said. - Reuters

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