China strengthens financial support for coal, electricity production

Photo taken on Sept. 1, 2021 shows the Qinghai-Henan direct current power transmission lines in Hainan Tibetan Autonomous Prefecture, northwest China's Qinghai Province. (Xinhua/Xie Tongqiang)

BEIJING, Oct. 5 (Xinhua) -- China's top banking and insurance regulator has released a circular on strengthening financial support for coal and electricity production and maintaining order in the commodity market.

The circular, released by the China Banking and Insurance Regulatory Commission, urges efforts to satisfy reasonable financing needs of power, coal, steel and non-ferrous metal producers to ensure supplies and stabilize prices.

It urges banks and insurance institutions to offer sound financial services to secure energy and electricity supplies for the winter and spring, and actively support major coal-producing areas and key enterprises to increase the supply of thermal coal.

The circular prohibits the use of bank and insurance funds for speculating on coal, steel, non-ferrous metals and other bulk commodities. It also prohibits withdrawing or cutting off loans from power and coal producers and relevant projects that qualify for financial support.

Measures should also be taken to prevent speculation on high-end consumer goods using business and consumer loans; illegal inflows of bank and insurance funds into stock, bond and futures markets; and behaviors inducing consumers to borrow blindly and spend excessively.

The commission will strictly investigate illegal activities such as speculation, hoarding and price gouging, and will devise punishments according to the law.