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The People’s Bank of China (PBOC) has injected ¥267 billion via one year targeted medium term lending facility (TMLF) with an aim to boost lending to small private firms.  

The positive effect of an increased supply of credit to small firms could be seen in the form an uptick in the Caixin China’s manufacturing PMI’s over the next few months. The guage surveys the small and medium-sized export oritented units as opposed to the government PMI, which mainly focuses on the state-owned enterprises with an easy access to credit.