September 13, 2012 / 1:06 AM / 5 years ago

China banks told to lend more to infrastructure projects-paper

BEIJING, Sept 13 (Reuters) - Chinese regulators have told commercial banks to lend more to projects to build railways, highways and other infrastructure to bolster economic growth, the official China Securities Journal reported on Thursday.

“Regulators recently required commercial banks to make timely adjustments in credit policy and use limited credit resources to step up support for the real economy, especially key projects in railways and highways,” the paper quoted unnamed banking sources as saying.

Banks have also been told to lend more to agricultural infrastructure and affordable housing projects, but they must control lending risks and ensure such projects are commercially viable, the paper added.

Last week, the National Development and Reform Commission, China’s top economic planning agency, announced it had approved more than $150 billion worth of infrastructure projects.

But analysts remain skeptical about any instant impact on economic growth as the projects will take time to find funding and start construction.

China injected a 4 trillion yuan fiscal stimulus package into the economy during the depths of the global financial crisis in 2008/09, but few analysts expect such steps now.

Reporting by Kevin Yao; Editing by Eric Meijer

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