Restoring Corporate Confidence and Increasing Medium - and Long Term Investment to Lay the Foundation for Stable Growth | Bank | Confidence
CCTV News: Since the beginning of this year, the Chinese economy has shown a recovery trend, but the foundation is still not solid, especially since April, the downward pressure on the economy has increased. How can China stabilize growth in the face of pressure? How will policies stabilize the overall economy?
Wen Bin, Chief Economist of China Minsheng Bank, told reporters that after reviewing various data, he found that finance continued to drive infrastructure investment in the first half of the year, and major infrastructure construction was steadily advancing. In the first half of the year, the progress of local bond issuance exceeded half, with a focus on supporting major infrastructure projects and other construction projects. At the end of June, medium - and long-term loans in the infrastructure industry increased by 15.8% year-on-year; The proportion of fund payments for policy oriented development financial instruments worth 739.9 billion yuan has exceeded 70%. With financial support, infrastructure investment in the first five months increased by 7.5% year-on-year, maintaining a relatively fast growth overall. The construction industry PMI in June also remained in a relatively high range of over 55%.
Wen Bin, Chief Economist of China Minsheng Bank: Infrastructure is also an important lever for stable growth this year. With the issuance of local government special bonds, banks have also increased their support for supporting funds. Therefore, we see that investment in infrastructure is also an important investment area.
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In addition to the growth of infrastructure investment driven by finance, the counter trend growth of medium - and long-term loans for enterprises in the first half of the year is more worthy of attention. This indicates that as the macroeconomic situation continues to improve, the demand for corporate credit is strong, and entrepreneurs have increased confidence in their future development.
Wen Bin, Chief Economist of China Minsheng Bank: From the first half of the year, our credit growth has been relatively strong. We can see the blue part of medium - and long-term loans, which is clearly the main force of credit investment. Especially, the growth of medium - and long-term loans for enterprises is still relatively fast. This also reflects the confidence of enterprises in future investment, increasing medium - and long-term investment. This lays the foundation for stable growth at present and for maintaining a stable recovery trend in the next stage.
Dong Ximiao, Chief Researcher of Zhaolian: The newly added RMB loans amounted to 15.73 trillion yuan, nearly 85% of which came from the issuance of loans to enterprises and institutions, mainly from medium - and long-term loans to enterprises and institutions. This left a deep impression on me. With the implementation of policies, the confidence and expectations of enterprises and institutions have recovered, and financing demand is repairing.
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Experts believe that the policy measures introduced in the early stage are taking effect. In the second half of the year, in response to unexpected challenges and changes, China's monetary policy still has sufficient policy space to ensure sustained and stable economic growth.