Big Six Large Chinese Banks Pledge Support For Xi’s Economic Growth Call

China’s six big state-owned banks have pledged their support to President Xi Jinping’s call for high-quality economic growth during the eventful Party Congress event as the nation faces a challenging period come 2023.

Industrial and Commercial of China Ltd the world’s largest bank by assets said it will play the pillar role of a major bank and further increase credit support to the real economy.

The other notable financial institutions, the Agriculture Bank of China, Bank of China, and Postal Savings of Bank, said they have reached fast credit growth in the first three quarters of the year and will continue to contribute the financial strength needed for a stable and high-quality operation of the economy.

China Construction Bank and Bank of Communication also reached fast credit growth and have stated similar support for the financial sector.

The world’s second-largest economy narrowly avoided contraction in the second quarter weighed by Covid-19 lockdowns and the slumping property sector. During the third quarter, banks ramped up credit support for the property industry, infrastructure, and small and midsized businesses.

China banks are usually the quickest to respond to government policy directions. The banks have warned they will face a margin squeeze in the second half as they respond to Beijing’s call to boost lending in the real economy.

Source Reuters

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