Recently, the latest data released by the People's Bank of China shows that in October 2022, the China Development Bank, the Export-Import Bank of China, and the Agricultural Development Bank of China added a net new mortgage supplementary loan of 154.3 billion yuan.

The balance of supplementary mortgage loans at the end of the period was 2,802.4 billion yuan.

　　Pledged Supplementary Loan, or PSL, refers to the large-scale financing provided by the People's Bank of China to financial institutions in the form of pledge to support the development of key areas of the national economy, weak links and social undertakings, approved by the State Council.

Reverse repurchase, standing lending facility (SLF), medium-term lending facility (MLF), and re-lending are all central bank monetary policy tools.

The central bank established PSL in 2014, mainly serving key areas such as shantytown renovation, underground pipe gallery construction, major water conservancy projects, and "going out".

The issuing objects are Development Bank, Agricultural Development Bank and Export-Import Bank.

For loans belonging to the support field, the central bank will provide financial support at 100% of the loan principal.

In addition, PSL is a phased structural monetary policy tool.

　　In recent years, especially since February 2020, PSL has been showing net repayments.

However, in September this year, the net increase of PSL was 108.2 billion yuan, and the net increase in October further increased to 154.3 billion yuan.

In historical comparison, the net increase of more than 100 billion yuan in a single month is also at a relatively high level.

In this regard, industry insiders believe that this move is expected to guide financial institutions to increase financing support for weak links and key areas of the real economy, which will help ease financing pressure, drive effective investment, and help stabilize the macroeconomic market.

　　"At present, my country's economy is at a critical point of recovery. The PSL tool is similar to special re-lending, which can provide long-term, low-cost funds for specific banks and guide financial institutions to support the development of weak links, key areas and social undertakings in the real economy. In order to reduce the pressure on fiscal expenditure, by providing long-term liquidity and targeted credit, it will also help to clear the transmission of monetary policy." said Zhou Maohua, a macro researcher at the Financial Market Department of China Everbright Bank.

　　In the view of industry insiders, while the fiscal policy is exerting force, the quasi-fiscal nature of policy finance has once again exerted its efforts to stabilize growth.

Its measures include the creation of more than 600 billion yuan of policy-based development financial instruments, an increase of 800 billion yuan in loans to support infrastructure, and an increase of 200 billion yuan in special loans to ensure the delivery of buildings, etc. PSL may be used to support the above areas.

　　"PSL is likely to be used to support 200 billion yuan of nationwide special loans for guaranteeing the delivery of buildings. Considering that PSL has been mainly invested in real estate-related fields, and policy financial institutions have officially entered the market to resolve real estate problems, PSL is expected to provide policy banks with The source of debt funds helps the policy tools of the long-term mechanism for real estate to be implemented faster and better." CITIC Securities Chief Economist Mingming said that considering that PSL has also been used in underground pipe gallery, key water conservancy projects and other projects in history, PSL is not excluded. Possibility to use in infrastructure projects.

If PSL funds are used to support infrastructure projects, the scale of new PSL additions may be higher in the future.

　　Tan Yiming, an analyst at Minsheng Securities, also believes that the newly added PSL is more likely to be invested in insurance and handover properties.

He said in the research report that, considering that policy banks are the main recipients of PSL issuance, and they are also an important starting point for stabilizing the macroeconomic market this year, PSL funds can supplement liabilities for policy financial institutions to help ensure Handover.

　　Wang Qing, chief macro analyst of Dongfang Jincheng, believes that this time PSL "reappears" and is more likely to support infrastructure investment.

"After all, supporting investment in infrastructure projects such as underground pipe gallery construction and major water conservancy projects can better reflect the long-term and low-cost policy tool attributes of PSL, while the special loan for 'guaranteing the delivery of buildings' has the characteristics of short-term assistance to a large extent."

　　On June 1, the executive meeting of the State Council pointed out that for financial support for infrastructure construction, it is necessary to increase the credit line of policy banks by 800 billion yuan.

On June 29, the executive meeting of the State Council decided to use policy and development financial tools to raise 300 billion yuan through the issuance of financial bonds to supplement the capital of major projects including new infrastructure.

On August 24, the executive meeting of the State Council once again pointed out that on the basis of the 300 billion yuan policy-based development financial instruments that have fallen into the project, an additional quota of more than 300 billion yuan will be added.

　　"Whether it is supporting infrastructure projects or ensuring the delivery of buildings, it is a measure taken by the People's Bank of China to guide policy financial institutions to increase financing support in key areas, which will further consolidate the foundation for stable growth in the fourth quarter." Wang Qing believes.

Mingming said that, in general, the launch of PSL is undoubtedly an important signal of "easy credit". It is expected that the central bank will continue to guide financial institutions to maintain the stability of the total loan growth, and the new RMB loans will likely exceed 21 trillion yuan in the whole year. The year-on-year growth rate of social financing is also expected to reverse the previous downward trend.

　　The industry expects that, while maintaining a satisfactory financing environment, monetary policy will strengthen the use of structural monetary policy tools and increase support for industries and enterprises that are greatly affected by the epidemic. The investment in infrastructure construction is expected to further increase. increase.

　　Economic Daily

　　Yao Jin