PBOC Sets Up New Financial Stability Committee

The People’s Bank of China (PBOC) announced on Friday that it has set up a macroprudential and financial stability committee to help defuse financial risks, pledging to maintain an accommodative policy stance. In its mid-year work summary, the central bank stated it will prioritize preventing and resolving major financial risks, supporting local government financing platforms in managing debt, and addressing risks in key regions and institutions in an orderly manner. The PBOC will continue to pursue an “appropriately loose” monetary policy in the second half of the year, using a variety of policy tools to maintain ample liquidity and guide financial institutions toward sustaining reasonable credit growth. Meanwhile, Xinhua reported that, as of the end of June, loans to the technology sector had risen 12.5% year-on-year, while lending to the green development and elderly care sectors increased by 25.5% and 43%, respectively.