BEIJING/SHANGHAI ¨C China pledged to step up measures to shore up its troubled banks and small businesses while continuing a crackdown on shadow banking and property speculation, in a difficult balancing act that risks exacerbating a buildup in bad debt at its traditional lenders.
As concerns mount over the state of China¡¯s $45 trillion financial system, the nation¡¯s central bank and its top financial regulator used the year¡¯s first weekend to unveil fresh details on how to combat risks amid the slowest economic expansion in three decades.
The People¡¯s Bank of China, which has been reluctant to prime the stimulus pumps too much, said Sunday that it will ¡°resolutely win the battle¡± against increasing financial risks, underscoring its role as a lender of last resort while directing local governments to step up front-line support.
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