China c.bank denies loans halted to sectors with overcapacity
BEIJING, July 23 (Reuters) - China's central bank said on Tuesday that it is following instructions by the cabinet to adopt tailored policies towards industries plagued by overcapacity, denying media reports that it had asked banks to stop lending to such industries.
"Currently, we haven't issued any internal circular on loans and financial problems of industries plagued by overcapacity," the People's Bank of China said in an emailed statement.
The statement came in response to domestic media reports that the central bank had issued a circular asking banks to stop extending new loans to such industries.
China's State Council, or cabinet, laid out plans earlier this month to ensure the country's financial sector would help bring about an orderly closing of some factories in industries struggling with overcapacity.
The council also said it would adopt policies that take into account the different situations facing such industries.
The slowdown in the world's second-largest economy has started to put pressure on some businesses in industries that beefed up capacity in the high-growth years, such as shipbuilding, steel and cement.
China Rongsheng Heavy Industries Group, the largest private shipbuilder, this month appealed for financial help from the government to deal with shrinking orders.
(Reporting By Xiaoyi Shao and Jonathan Standing)