(Yicai Global) Feb. 16 -- China's central bank said during this year's financial market work conference that it would increase the duration management of policy-based and developmental financing instruments.

The People's Bank of China will also enhance the equipment renewal and renovation special refinancing policy tools to support the completion of projects, according to information posted on its website yesterday.

The policy-based and developmental financing tools may be further increased, according to Zhao Wei, chief economist at Sinolink Securities. This year's tools are expected to continue 2022's aim and be adjusted appropriately according to actual demand to provide stronger support, Zhao added.

The PBOC will improve the development of market mechanisms for bond underwriting, market making, and investor eligibility, accelerate the growth of a multilevel marketing system, improve the macro-management of financial bonds, and enhance the resilience of the bond market and market-based pricing capabilities, it noted during a meeting on Feb. 10.

Net financing of Chinese corporate bonds declined to CNY148.6 billion (USD21.7 billion) last month, down from CNY435.2 billion a year earlier.

The central bank will also further promote the opening of the bond and derivatives markets and encourage the introduction of regulations on corporate bonds and revisions to legislation governing bills. It will also boost the smooth operation of the money market, continue to regulate the bill market, strengthen the supervision and management of the gold market, and ensure the steady development of the Chinese yuan derivatives market and asset-backed securities market.

Regarding the real estate industry, the PBOC said it is necessary to implement a differentiated housing credit policy based on local conditions, provide financial services for the delivery of housing projects, increase financial support for home leasing, and promote a smooth transition of the industry to a new development model.

Although the price expectations among sellers of second-hand property have recovered in some cities since last month, the market has yet to show signs of recovery, and the effect of real estate policies remains unnoticed, said Xu Yuejin, deputy research director at China Index Academy's Index Division. More financing for developers and a decline in credit risk still depend on policy guidance and the market’s recovery, Xu pointed out.

The PBOC said it will promote the rectification of the financial businesses of large platform enterprises, support their healthy and standardized development, and strengthen regular supervision. The bank plans to expand the support for bond financing for private companies and encourage financial institutions to increase lending to private enterprises.

Editor: Martin Kadiev