PBOC reaffirms policy support

China's central bank will step up credit support for the economy while keeping the yuan steady, People's Bank of China governor Yi Gang said yesterday in reaffirming policy objectives.

The economy rebounded at a faster-than-anticipated clip in the third quarter, but a more robust revival in the longer term will be challenged by continuing Covid-related curbs, a prolonged property slump and global recession risks.

On the yuan, Yi said the intention is to keep currency stable while enhancing its flexibility.

As for stalled housing projects, Yi said the PBOC will make 200 billion yuan (HK$216.9 billion) in special loans to ensure work is completed.

Yi said too that Beijing will seek to resolve financial risks in the real estate sector and guide financial institutions to meet property developers' demands for financing - but within reason.

And there will be further enhancement of financial supervision in curbing financial risks.

Meanwhile, He Lifeng, head of the state planning agency, looks likely to succeed the country's economic tsar, Vice Premier Liu He, in March, though observers believe He may struggle to maintain Liu's policy clout.

He, 67, a confidant of President Xi Jinping, was elevated to the Communist Party's Politburo during its just-ended congress this month. The top priority for He will be to help Li Qiang - another Xi ally, and expected to become premier in March - to reverse the economy's worst downturn in decades.

The departing Liu, Xi's top economic adviser and a childhood friend, has held an unusually powerful portfolio, covering economic policy, the financial sector and trade ties with Washington, which have overshadowed the role of outgoing Premier Li Keqiang.