China’s central bank is seeking to support economic growth with unconventional tools that Credit Suisse Group AG and Everbright Securities Co. say look more like fiscal policy.
The People’s Bank of China this year started a 100 billion yuan ($16 billion) quota for relending earmarked for agriculture and small businesses. It offered another 300 billion yuan for low-income housing, China Business News said.
Governor Zhou Xiaochuan is trying to carry out Communist Party orders to protect this year’s 7.5 percent economic-growth target without resorting to nationwide stimulus that stokes debt dangers. While selective tools such as relending can bypass riskier industries including property, JPMorgan Chase & Co. says they lack transparency and contrast with the PBOC’s efforts to shift to market- from state-directed credit.