The People’s Bank of China and the China Banking Regulatory Commission will likely provide instruction to banks, the Nikkei business daily reported.
Beijing has ordered financial institutions to tighten lending for firms seeking to expand production capacity unless the project for which the funds are used conforms to Chinese industrial policies, the report said without citing sources.
According to a "government blueprint," officials are most concerned with possibly overcapacity in steel, cement, sheet glass, coal chemical, crystal silicon and wind power, with aluminum and shipbuilding also seen as overgrown, the report said.
But the report also said Beijing is interested in increasing financing to high-tech and services firms.
