PSL重出江湖 “三大工程”迎及时雨

Core Viewpoint - The People's Bank of China (PBOC) has resumed the use of pledged supplementary loans (PSL) with a net increase of 350 billion yuan in December 2023, indicating a targeted approach to support key economic sectors and social development [1][2]. Group 1: PSL Overview - PSL was established in 2014 to provide long-term financing to financial institutions for key areas of the national economy, with a focus on specific projects such as affordable housing and major infrastructure [1]. - The PSL balance reached a peak of 3.5979 trillion yuan in November 2019, followed by a decline, but saw a resurgence in 2022, surpassing 3 trillion yuan again [1]. Group 2: Economic Implications - Experts suggest that the recent PSL increase is both reasonable and necessary due to ongoing pressures in the real estate sector and the need for funding in infrastructure projects [2]. - The PSL funding is expected to positively impact economic growth, with projections indicating that an additional 500 billion yuan could boost annual fixed asset investment growth by 0.5 to 0.7 percentage points [2]. - The focus of PSL funding in 2024 is likely to be on urban village renovations and affordable housing construction [2].