The Chinese central bank will extend the use of three monetary policy tools designed to encourage financial institutions to support green technologies and the logistics sector, the People’s Bank of China said in a statement on Sunday.
The bank will continue to offer cheap funding until the end of 2024 to banks which lend to firms that are helping reduce carbon emissions. The policy tool was first adopted in November 2021.
The central bank will also extend the special re-lending facility for the transport and logistics sector to the end of June this year to further enhance financial support for smooth transportation and logistics, according to the circular.
In the next step, the central bank pledged to continue to increase support for inclusive finance, green development, scientific and technological innovation, infrastructure construction, and other key areas and weak links with structural monetary policy tools.
