Regulators are keen to boost parts of economy that are generating growth
Loans to key sectors of the economy, including energy and communications, will continue to be encouraged despite concerns about overheating, a top banking regulator says.
'On the one hand, we should require commercial banks to control risks,' said Wang Zhaoxing, director general of the China Banking Regulatory Commission's supervision department.
'On the other hand, we are encouraging the central bank to lend to some sectors that need to develop quickly.
'So far, we have adopted effective macroeconomic policy measures. Some sectors should be encouraged, such as energy, coal and communications. These sectors will get more financing.'
Beijing continues to struggle with a balance between stop-and-go macroeconomic policies. Mr Wang's comments on the sidelines of a financial conference in the capital suggest that the commission is leaning towards keeping loans open to avoid a slowdown in parts of the economy that are generating growth and keeping other industries in production.
His remarks may also reflect growing confidence among the leadership that measures to slow the economy - and prevent a feared 'hard landing' - are working.
