BEIJING- China’s central bank cautioned on Thursday against a “one-sided” pursuit of credit expansion after data showed a slowdown in bank lending, vowing to prioritize the quality of credit over size and move to revitalize existing loans.
New bank lending in China rose less than expected in March from the previous month, while broad credit growth hit a record low, boosting the case for the central bank to roll out more stimulus steps to help achieve an ambitious growth target.
The central bank will channel more funds into technology innovation, green manufacturing and small firms, the Communist party committee of the People’s Bank of China (PBOC) said in an article in the official People’s Daily.
“With the transition of the economy from high-speed growth to high-quality development, … it is even more necessary to change the traditional mindset of one-sided pursuit of scale and establish the concept of prioritizing quality and efficiency,” the PBOC said.
“Credit allocation should ultimately be in line with the needs of high-quality development of the real economy. The key is to grasp the level well, rather than the more, the better.”
