The People’s Bank of China is taking steps to minimize potential contagion to the entire financial system from risks in those areas, according to a quarterly monetary-policy report posted on its website yesterday.
China will also strictly control lending to high-emission industries and those with overcapacity,the PBOC said in yesterday’s report.
China’s economy will probably remain stable, even though potential growth may slow, the PBOC said. The country must pay additional attention to potential risks such as a weaker property market and soft external demand, the central bank said.
Gross domestic product is projected to increase 7.3 percent this year as the government reins in credit, compared with an official target of about 7.5 percent.