China's real economy sees stable credit growth in H1: official

BEIJING, Aug. 12 (Xinhua) -- China's real economy saw stable growth in effective capital supply in the first half of the year as banks stepped up credit support, an official from the China Banking and Insurance Regulatory Commission (CBIRC) said on Friday.

Yuan loans increased by 13.68 trillion yuan (about 2 trillion U.S. dollars) in the January-June period, up 919.2 billion yuan from a year ago, the official told a press briefing.

More lending was directed to small firms and manufacturing. Outstanding inclusive loans to micro and small firms increased 22.64 percent year on year to 21.77 trillion yuan at the end of June, and the manufacturing sector received 3.3 trillion yuan of new loans, 1.6 trillion yuan more than the figure seen a year ago.

Loans for infrastructure construction increased 11.1 percent from a year earlier at the end of June.

The official said that more efforts will be made to push more credit to the real economy, including infrastructure and manufacturing, and to improve services for new urban residents and bolster support for education, health care and elderly care.

The official said that the country's banking sector has maintained a stable performance, with a stronger ability to fend off risks and sufficient capital and provision coverage.

Authorities are preliminarily considering a pilot program in six provincial-level regions to aid in the disposal of bad loans of small and medium-sized banks, the official said.

The official said the CBIRC will adhere to the principle that "houses are for living in, not for speculation," effectively meeting the reasonable financing demand of developers as well as the rigid and upgraded demand for housing from new residents and young people.

Efforts will also be made to ensure the completion of houses under construction and guarantee people's livelihoods, the official said.