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SHANGHAI, Oct 21 (Reuters) – China will promote a sustainable economic recovery and focus on expanding domestic demand while warding off financial risks, People’s Bank of China Governor Pan Gongsheng said in a report released on Saturday.
The central bank will make its policies “more precise and forceful” while guiding financial institutions to reduce real lending rates and reduce financing costs for businesses and individuals, Pan said in the report published on the bank’s website.
Efforts will be made to activate capital markets and boost investor confidence, Pan said in the report, which outlined authorities’ short-term priorities and was submitted to the country’s parliament.
Pan pledged to “implement macro policy adjustments in response to the changes in economic conditions, effectively strengthen financial supervision, focus on expanding domestic demand, enhance confidence and prevent risks, and promote sustainable economic recovery,” it said in the report.
China’s economy grew faster than expected in the third quarter, while consumption and industrial activity also surprised positively in September, suggesting recent policy measures are contributing to a tentative recovery.
Pan also said in the report that China will eliminate the default risk of bonds issued by major real estate companies to prevent the risk from contagion to stock, bond and foreign exchange markets and ensure the stable functioning of financial markets. (Reporting by Casey Hall; Editing by David Holmes)
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