BEIJING (Reuters) – China’s six largest state-owned banks pledged to bolster their support for the sluggish economy in response to President Xi Jinping’s call for high-quality economic growth at the opening of a major Communist Party conference.
The Industrial and Commercial Bank of China Ltd., the world’s largest bank by assets, said it will play the primary role of a major bank and increase credit support for the real economy, according to a Shanghai Stock Exchange filing on Sunday.
The Agricultural Bank of China (OTC:), the Bank of China and the Postal Savings Bank of China said they achieved rapid credit growth in the first three quarters of this year and will continue to contribute the financial strength necessary for the stable and high-quality operation of the economy. .
China Construction Bank (OTC:) Corp (601939.SS) and Bank of Communications also noted rapid credit growth and said they will step up credit risk management to better serve the economy.
Their pledges of support came after Xi opened the five-year party congress in Beijing with a speech on Sunday, saying China would aim for high-quality economic growth and steadfastly support the private economy.
The world’s second-largest economy narrowly avoided a downturn in the second quarter, battered by a widespread COVID-19 shutdown and a downturn in the real estate sector.
During the third quarter, banks boosted credit support for the real estate, infrastructure and SME sectors.
Large Chinese state-owned banks are usually the quickest to respond to government policy directives. Banks have warned that they are prepared to face pressure on profit margins in the second half as they respond to Beijing’s call to boost lending to the real economy.
In September, the China Construction Bank announced that it plans to create a 30 billion yuan ($4 billion) fund to finance home rentals to help the ailing real estate sector.