China central bank to expand relending pilot scheme to support economy

SHANGHAI: China's central bank said on Saturday it will expand a pilot scheme on relending, the latest effort by Beijing to help support a slowing economy.

The scheme, which allows banks to refinance high quality credit assets rated by the central bank, was introduced in Guangdong and Shandong provinces last year. Analysts have said the policy tool is aimed at supporting smaller firms.

It will be expanded to include Shanghai, Beijing, Chongqing and six other provinces and municipalities, the People's Bank of China said in a statement posted on its website.

Beijing has taken a raft of measures, including cutting interest rates, lowering reserve requirements and extending medium-term lending facilities, in a bid to support the world's second-biggest economy.