Monetary policy tools have increased the three major projects to release signals to boost and stab

Mondo Finance Updated on 2024-02-19

Original title: Monetary policy tools increase the "three major projects".

Reporter Ma Chunyang.

The People's Bank of China recently released the launch of mortgage supplementary loans in January 2024, with China Development Bank, Export-Import Bank of China and Agricultural Development Bank of China adding 150 billion yuan of net new collateral supplementary loans (PSL). The balance of mortgage supplementary loans at the end of the period was 3,402.2 billion yuan.

It is worth noting that this is the second time that the People's Bank of China has invested 150 billion yuan in PSL after restarting PSL in December 2023 with 350 billion yuan. Research institutions believe that this round of PSL investment is mainly used for the construction of affordable housing, the transformation of urban villages, and the construction of public infrastructure for "flat and emergency purposes", releasing the signal of policy efforts to promote stable growth.

The psl was created by the People's Bank of China in April 2014. As one of the structural monetary policy tools, the main function of mortgage supplementary loans is to support the development of key areas of the national economy, weak links and social undertakings and provide large-scale financing with a long term to financial institutions. The ** Economic Work Conference held in December 2023 proposed to actively and prudently resolve real estate risks, meet the reasonable financing needs of real estate enterprises with different ownership systems without discrimination, and promote the stable and healthy development of the real estate market. Accelerate the construction of affordable housing, the construction of public infrastructure for both ordinary and emergency purposes, and the construction of the "three major projects" of urban village transformation.

CITIC ** Chief Economist Ming Ming believes that the "three major projects" are one of the priorities of this year's work, which can hedge the impact of downside risks in the real estate market on the macroeconomy to a certain extent. At the same time, the "three major projects" are important measures to improve people's livelihood and make up for shortcomings, which are necessary and feasible.

The reporter noted that as of January 30, a number of cities across the country have announced the first special loan for urban village renovation to be implemented locally, involving banks including China Development Bank and Agricultural Development Bank of China. On January 30, the China Development Bank issued the first batch of special loans for the transformation of urban villages800 million yuan, involving nearly 100 projects in Guangzhou, Zhengzhou, Jinan, Nanjing, Shijiazhuang and other cities, benefiting more than 100,000 village (resident) households, and building 23 resettlement houses840,000 sets.

According to the person in charge of the relevant department of the China Development Bank, since 2023, the Development Bank has set up a special working group to actively connect and implement financial support policies, simultaneously formulate internal credit business measures, build a communication mechanism with local governments, cooperate with overall planning, and promote project implementation in compliance. The Development Bank provides loans in accordance with the principles of marketization and rule of law, strictly implements the requirements of earmarked funds and closed management, disburses loans according to the progress of project implementation, and promotes the implementation of urban village reconstruction projects in accordance with regulations.

On January 30, the Agricultural Development Bank of China issued a loan of 79 million yuan for the reconstruction project of Nangaoji Urban Village in Xinhua District, Shijiazhuang City. During the same period, the Agricultural Development Bank also put 40 in Jinan and Chengdu respectively500 million yuan and 108.4 billion yuan to support the first batch of special loans for projects.

According to the analysis of market research institutions, the PSL released by the People's Bank of China to policy banks is likely to be the main fund for this round of special loans for urban village transformation**. Xingye ** recently released a research report mentioning that this round of PSL has a net increase of 500 billion yuan, and the financial support of the "three major projects" is expected to continue to increase. The "three major projects" represented by the transformation of urban villages and the construction of affordable housing continue to be good on the funding side, which will help solve the problems of fund raising and income level in the promotion of some regional projects, and accelerate the implementation of related projects. (Economic ** reporter Ma Chunyang).

*:Economy**].

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