China's Central Bank Faces a $600 Billion Test
- More than 3 trillion yuan of MLF loans to come due this year
- Collateral pressures will rise, Citic economist Ming says
This article is for subscribers only.
People’s Bank of China Governor Zhou Xiaochuan’s shift toward new tools to steer the economy has swollen a targeted lending program to such a level that outstanding funds are now worth more than the annual output of the Malaysian and Danish economies combined.
The Medium-term Lending Facility has increased to 4.1 trillion yuan ($594 billion), with 3.2 trillion yuan coming due from April to December this year, according to data compiled by Bloomberg. About 2 trillion yuan matured in the same period last year.