According to the official Chinese government website, China’s Central Bank held an analysis meeting on May 23 with 24 major banks and asked them to step up their efforts to increase credit growth. 

Radio Free Asia cited some commentators as saying that the move indicates the authorities’ view on the severity of the economic situation. 

In the meeting, analysts judged that the current economic downturn would persist. Many market entities were extremely tough. In addition, they said that the complexity, intensity, and uncertainty of monetary and credit activities were increasing. 

As reported on XiwangZhisheng,  the biggest difficulty for bank governors at the moment is that demand is scarce.

According to a governor, bank funds are abundant but the main problem comes from the scarce  demand from enterprises. They are  facing the problem of unstable supply chains.

Moreover, the Chinese government held a teleconference on stabilizing the national economy on May 25. Premier Li Keqiang emphasized at the meeting that stable growth should be given a more prominent position. 

Zhu Yuezhong, an assistant professor at the Taiwan University of Science and Technology, said that banks had to keep releasing money when the economy was not in a good shape. He added that the Central Bank wanted banks not to tighten funds as companies may fail.

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