PBOC’s Pan Gongsheng Calls for Targeted Credit Policy to Curb ‘Involution’ Competition

TREE NEWS reports: People’s Bank of China Governor Pan Gongsheng said in a signed article that the central bank will strengthen coordination with industrial policy and guide financial institutions to assess risks scientifically, applying differentiated measures with support for some sectors and controls on others to curb “involution-style” competition in certain industries. Experts say the logic of financial resource allocation is shifting away from credit that fuels crude capacity expansion toward serving supply optimization, technological upgrading and the orderly exit of outdated capacity, with the credit structure expected to improve further during the 15th Five-Year Plan period.