Major Banks Pledge More Support For Chinese Economy

The nation's six largest state-owned banks have vowed they will enhance support to the slowing economy, in response to President Xi Jinping's call for high-quality economic growth at the opening of the 20th party congress.

Industrial and Commercial Bank of China, the world's largest bank by total assets, said it will play the pillar role of a major bank and further increase credit support to the real economy, according to a filing to the Shanghai Stock Exchange on Sunday.

Agricultural Bank of China, Bank of China and Postal Savings Bank of China said they reached fast credit growth in the first three quarters this year and will continue to contribute financial strength needed for the stable and high-quality operation of the economy.

China Construction Bank and Bank of Communications also noted fast credit growth and said they will further step up credit risk management to better serve the economy.

Their pledges of support came after Xi opened the once-in-five-year party Congress in Beijing with a speech on Sunday morning in which he said China would aim for high-quality economic growth.

The world's second-largest economy narrowly avoided contracting in the second quarter, weighed by Covid-19 prevention measures and the slumping property sector.

During the third quarter, banks ramped up credit support to the property industry, infrastructure sector and small and medium businesses.

In September, China Construction Bank announced it plans to set up a 30 billion yuan fund to finance rental housing to aid the struggling property sector. (Reuters)