The Central Bank Reactivates Pledged Supplementary Lending With Additional 500 Billion Yuan (AI Translation)
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- The People's Bank of China (PBOC) has reactivated its medium-to-long-term low-cost funding tool, Pledged Supplemental Lending (PSL), allocating an additional 500 billion yuan to support the 'Three Major Projects' aimed at stabilizing economic growth and implementing new real estate development models.
- The 'Three Major Projects' include affordable housing construction, urban village transformation in mega-cities, and dual-use public infrastructure development. The PSL funds are channeled through policy banks such as the China Development Bank, with strict project compliance requirements.
- Observers anticipate further PSL allocations in 2024 and potential adjustments to fiscal policies, including special local government bonds for urban village transformations that may be used as project capital.
文｜财新周刊 王石玉 刘冉
By Caixin Weekly's Wang Shiyu, Liu Ran
时隔一年，中国人民银行向特定领域重点项目提供中长期低成本资金的结构性货币政策工具——抵押补充贷款（Pledged Supplemental Lending，PSL），再次启动。
A year later, the People's Bank of China has reactivated the Pledged Supplemental Lending (PSL), a structural monetary policy tool that provides medium- to long-term low-cost funds to key projects in specific areas.
2024年1月2日，央行赶在新一年开市前发布2023年12月PSL操作情况：国家开发银行（下称“国开行”）、中国进出口银行（下称“进出口行”）、中国农业发展银行（下称“农发行”）净新增PSL贷款3500亿元；随后又在1月8日总结2023年主要货币政策时明确指出，2023年已为“三大工程”新增PSL额度5000亿元，为政策性开发性银行发放“三大工程”建设项目贷款提供中长期低成本资金支持。
On January 2, 2024, the People's Bank of China (PBOC) released the details of its Pledged Supplementary Lending (PSL) operations for December 2023 just before the start of the new trading year. The report indicated that the China Development Bank (referred to as "CDB"), the Export-Import Bank of China (referred to as "Exim Bank"), and the Agricultural Development Bank of China (referred to as "ADBC") had a net increase in PSL loans amounting to 350 billion yuan. Subsequently, on January 8, when summarizing major monetary policy actions for 2023, it was explicitly stated that an additional PSL quota of 500 billion yuan had been allocated for "three major projects" during the year. This measure aimed to provide policy-oriented development banks with medium- and long-term low-cost funds to support construction loans for these projects.
“三大工程”是当前稳定中国经济增长、落实房地产发展新模式的重要抓手，在2023年4月28日的中央政治局会议上首次提出，具体是指保障性住房建设、超大特大城市城中村改造和“平急两用”公共基础设施建设。
The "Three Major Projects" are currently an important focus for stabilizing China's economic growth and implementing a new model of real estate development. They were first proposed at the Central Political Bureau meeting on April 28, 2023, and specifically refer to the construction of affordable housing, the transformation of urban villages in mega-cities and extra-large cities, and the development of public infrastructure that can be used for both normal conditions and emergency situations.
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