January 16, 2014 / 11:52 AM / 4 years ago

China to clean up poorly managed local financing firms-c.bank

BEIJING, Jan 16 (Reuters) - China central bank said on Thursday that it would tell banks to cut lending to poorly managed local government financing firms while supporting those that have sound management and risk controls.

“We will work together with related departments and local governments to thoroughly clear up local government financing vehicles with poor credibility, unclear functions and an unsustainable financial situation,” the People’s Bank of China said in a statement on its website, www.pbc.gov.cn.

The central bank will actively push forward preparations for a municipal bond market and prudently experiment with mortgage loans backed by rural land rights, it said. (Reporting by China economics team; Editing by Ron Popeski)

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