Strategy Note /
China

CN : Strategy - PBOC, CBIRC and major financial institutions to maintain credit growth

    Mark Po
    Mark Po

    Research Analyst

    CGS-CIMB
    25 May 2022
    Published by

    After the State Council released a package of stimulus policies, the PBOC, the CBIRC and other major financial institutions held a meeting and delivered the message that they will maintain credit growth to boost economic growth. The meeting also delivered the message that financial policy will maintain stable growth of credit to the property sector. In line with our discussion in our previous update, we believe that underperforming sectors, including property and related industries (building materials, decoration materials and home appliances), consumption and industrial (especially autos and auto parts), and TMT names (the platform economy) may react positively to news flow on the messages released by the State Council.