China to boost rural financing, banks should help grain producers, PBOC says

China will direct more financial resources towards key areas and weak links in rural areas, the central bank said on Friday, in Beijing’s latest effort to stimulate a sluggish economy.

The People’s Bank of China (PBOC) outlined almost 30 measures aimed at backing a stronger agricultural sector, including financing major grain producers to expand their capacity and upgrade their equipment and technology.

Financial institutions should also issue medium- and long-term loans to support key areas such as upgrading agricultural facilities and supporting the seed industry, as well as ensuring the production and supply of grain, the statement said.

Monetary tools such as re-lending and rediscount facilities will be used to guide financial institutions to enhance lending to the rural sector, the statement added.