Slower Credit Growth May Be China’s ‘New Normal,’ PBOC Chief Says

People’s Bank of China (PBOC) Governor Pan Gongsheng said slower credit growth but more efficient allocation may become the country’s “new normal,” as the economy shifts from credit-hungry real estate to light-asset technology.

Speaking Wednesday at the Lujiazui Forum in Shanghai, the central bank chief noted that maintaining past credit growth is “neither easy nor necessary,” given that outstanding loans to the property sector and local government financing vehicles are shrinking.