Chinese Central Bank Vowed to Add More Support to Smaller Enterprises

Chinese central bank is ready to provide more support to smaller business as country’s economic growth risks mounts, said Governor Yi Gang.

Monetary policy is in a “comfortable range” and is helping support the economy, he said on a panel at the Boao Forum for Asia on Friday.

“We also stand ready to support small and medium enterprises with more instruments if needed.”

He noted the recent measures by the People’s Bank of China to transfer profits to the central government and support for small and mid-sized businesses.
“Accommodative monetary policy is stepping up support for the real economy,” he said.
Among various measures by the PBOC, it refrained from cutting policy interest rates last week and gave banks modest liquidity boosts which in other way disappointed investors’ expectation.

Economists from UBS Group AG to Nomura Holdings Ltd. have downgraded their growth forecasts for this year to well below the government’s target of about 5.5%.

Meanwhile, investors are pulling funds out from Chinese assets pressuring the yuan amid Federal Reserves of U.S. hiking interest incentivizing funds flow to the U.S.