PBOC Justifies Loan Slowdown Following Record Contraction

China’s central bank dismissed concerns over a slowdown in new loans while the economy transitions away from old growth drivers, following a record contraction in lending earlier this year.

The People’s Bank of China pledged to keep financing conditions “relatively loose” and guide banks to firm up their credit support to the economy, in a quarterly monetary policy report published Tuesday. It highlighted the economy’s transition away from the property sector as one of the factors contributing to the slowdown in loan expansion.