A message of support for the economy came from the People's Bank of China

A new message of support for the economy came from the Chinese monetary policy authority.

The People's Bank of China announced that prudent monetary policy will be strengthened to support the real economy, especially in sectors and small-scale companies affected by the epidemic.

The bank stated in its statement that they will promote healthy and stable financial markets and provide a favorable monetary and financial environment.

The People's Bank of China also renewed their message that they would keep liquidity at an appropriate rate.

The latest statement by the People's Bank of China followed the decisions taken regarding required reserves. The bank announced on Monday that it has cut its foreign currency reserve requirement ratios to 8 percent.

While the decision is expected to enter into force on May 15, it was emphasized that the step taken would support liquidity management.

On April 15, the People's Bank of China lowered the required reserve ratios of banks by 25 basis points.

Recently, the People's Bank of China has put on the agenda a loosening monetary policy framework that supports economic growth.

While the People's Bank of China announced a 23-item package to support the economy, bank officials continued their statements prioritizing growth.

Yi Gang, Chairman of the People's Bank of China (PBOC), stated that the monetary policy is supportive and said that they are ready to provide support to small and medium-sized companies if needed.

Financing facility for real estate companies
The People's Bank of China also stepped up its support for the troubled real estate company.

The People's Bank of China has requested that banks relax credit restrictions for some troubled real estate companies, sources familiar with the matter told Bloomberg.

Sources stated that the People's Bank of China met with major banks and asset management companies last week to resolve the crisis experienced by real estate developers, especially Evergrande.

Sources stated that 12 real estate companies, including Evergrande, will be supported in the first phase of the program, and the list will be updated as needed.