PBOC Added $70 Billion Cheap Credit in 2023 to Fund Housing, Infrastructure

What’s new: China’s central bank added 500-billion-yuan ($70 billion) worth of low-cost loan quota for policy-oriented banks in 2023 to ramp up financing for housing and infrastructure projects and bolster the economy, according to a report by the People’s Bank of China.

By the end of December, the outstanding amount of the PBOC’s Pledged Supplemental Lending (PSL) program to policy banks was 3.25 trillion yuan, an increase from 2.9 trillion yuan in the previous month, according to data released by the central bank. The monthly net injection of 350 billion yuan was the largest increase via the program since November 2022.