THE banking and insurance regulator has asked the nation’s banks and insurance companies to give more support to infrastructure investment, importers and exporters, and creditworthy companies experiencing temporary problems.

In a statement posted on its website late Saturday, the China Banking and Insurance Regulatory Commission said that credit support should be boosted for infrastructure projects that have sound operations and an adequate capital base on condition local governments’ implicit debts don’t increase. The regulator also called on the institutions to raise the proportion of medium and long-term loans to avoid placing strain on borrowers at the end of the month or quarter.

The move came amid a period of uncertainty for China’s economy, in part because of an intensifying trade row with the United States.

The government is accelerating infrastructure spending and rolling out other support measures for businesses to cushion the economy as it braces for the impact of escalating U.S. trade tariffs.

China almost quadrupled the value of fixed-asset investment projects approved in July from the previous month as it looks to accelerate infrastructure spending. Zhao Chenxin, an official at the National Development and Reform Commision, told reporters Thursday that the government gave the green light to 17 fixed-asset investment projects in July, worth a combined 77.69 billion yuan (US$11.24 billion). That compared with approvals for 20.8 billion yuan of spending in June.

Data last week showed China’s investment growth has slowed to a record low and consumers are turning cautious on spending.

On Saturday, the regulator called on banks and insurers to address “weak points” in China’s infrastructure sector and cooperate with local governments to identify their needs but be careful about raising their hidden debt levels.

It also said financial institutions should not “blindly” withdraw funding from companies that have a good credit record but that are experiencing “temporary operational difficulties,” without naming any such firms.

Support should also be given to foreign trade and export-oriented firms affected by the situation on the international market and going through problems but retain good development prospects, it added.

Growth in China’s exports and imports accelerated in July despite fresh U.S. tariffs.

Earlier this month, the regulator said it would guide financial institutions to expand financing, including to qualified private companies and small businesses.

(SD-Agencies)