coal power plant Photo: VCG

 
China will take measures to ensure reasonable financing requests from enterprises in industries including coal power, steel and non-ferrous metals being met and prohibit bank and insurance funds from being used for speculation of commodities, in an effort to stabilize market.
 
Banking and insurance institutions are being urged to provide financial support for energy power supply firms in the coming winter and next spring, and to actively support major coal-producing areas and key coal companies to increase the supply of thermal coal to ensure that households have access to sufficient heating, China Banking and Insurance Regulatory Commission said in a statement published on Monday.
 
The regulator has emphasized that it will forbid illegal suspension of loans to coal power, coal-related firms and projects that meet government requirements. Bank and insurance funds are forbidden to illegally participate in the specuation of bulk commodities including coal, steel and non-ferrous metals, the regulator said.
 
China has been experiencing a power crunch since last months with some regions in the country suffering from sporadic power outages that have halted factory productions and even households power consumption, due to a combination of factors including the country’s heavy reliance on coal, whose prices have been on the rise, the instability of clean power, and surging production activities bolstered by pent-up demand amid the COVID-19 pandemic. 
 
Global Times