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Economy

China's state banks to boost lending as Beijing fans economy

Additional loans to infrastructure and small businesses risk return of bad debt

Chinese authorities directed state banks to expand lending for infrastructure projects and small businesses in August.
Chinese authorities directed state banks to expand lending for infrastructure projects and small businesses in August.   © Reuters

HONG KONG -- China's big four state banks have reported healthy finances for the first half of the year, with profits growing and bad debts shrinking. But for the second half, they intend to expand loans at the government's behest, posing the risk of falling backward again.

"State-owned commercial banks will step up credit support for major infrastructure projects and help the activities of small and medium-sized companies," China Construction Bank President Wang Zuji said at an earnings conference. 

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