(Bloomberg) China has ordered its financial institutions to increase lending to the energy sector firms to ease the power shortage this winter.
The China Banking and Insurance Regulatory Commission says that financial institutions should prioritize lending to power plants and mines to boost thermal and electricity supply.
The regulator banned the use of bank loans to speculate or invest in commodities such as steel, metals, and coal.
Investment in high-end consumer goods has also been prohibited, with the CBIRC also promising banks more allowances in non-performing loans.
China has also asked financial institutions to fund metal firms in their bid to adopt green energy in their production.
Analysts downgraded China’s growth outlook due to a power crisis that began last month, disrupting factory activities.
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