SHANGHAI, April 9 (Reuters) - The China Development Bank will increase lending to spruce up rundown housing in April, state media reported, as Beijing takes cautious steps to selectively stimulate its economy.
The report follows a decision by China’s cabinet last week to speed up renovation of rundown communities in urban regions. The move is perceived by many economists as a kind of “mini-stimulus” package that will allow the government to inject cash into the economy in a targeted way in response to signs of slowing growth in the first quarter.
The official Xinhua news service quoted CDB president Hu Huaibang as saying at a conference the bank would accelerate approval for loans to renovate rundown communities in China, aiming to lend 100 billion yuan ($16.14 billion) by the end of April.
The report said the CDB has already committed 140 billion yuan to low-income housing projects in the first three months of the year, a tenfold increase year on year, and has made loans totalling 31.2 billion in the first quarter.
This compares to a total of 623 billion yuan lent to low-income housing between 2005 and 2013, the report said.
$1 = 6.1968 Chinese Yuan Reporting by Pete Sweeney; Editing by Shri Navaratnam