Pan Gongsheng was appointed Party Secretary of the People's Bank of China on July 1, 2023.
Vcg | Visual China Group | Good pictures
BEIJING – China has pledged to reduce the amount of liquidity its banks must hold as reserves as early as next month in a bid to boost its struggling economy.
Reserve ratio requirements for banks will be cut by 50 basis points starting Feb. 5, which will provide 1 trillion yuan ($139.8 billion) in long-term capital, Pan Gongsheng, governor of the People's Bank of China, told a news conference in Beijing. Wednesday.
This is the first reduction in reserve requirements this year, after two cuts last year. The PBOC said on Wednesday that there is room for further monetary policy easing. Lowering the reserve requirements that banks must maintain will increase the ability of lenders to extend credit and stimulate spending in the broader economy.
Data released last week showed the world's second-largest economy growing by 5.2% in 2023, broadly in line with official forecasts. Its fourth-quarter GDP growth was also 5.2%, but shy of economists' average estimate.
Its post-Covid recovery has been sluggish, with China's top leaders warning the recovery will be “brutal”.
Beijing is seeking to boost growth in a targeted manner while boosting its once-bloated real estate sector, with some of its biggest real estate developers facing serious credit problems. This has intensified financial risks and undermined consumer confidence.
China pledged on Monday that “Strengthening the inherent stability of the market“Amidst a rout in the country's onshore and offshore stock markets.
This is a growing story. Check back for more updates.