China's central bank said the economy is expected to realize its 5% growth target this year while calling for an economic transformation as the debt-driven growth model becomes less effective.

The People's Bank of China said there are "significant shifts" in the real estate supply-demand dynamics, which also makes it urgent for the nation to upgrade the economy, according to a quarterly report on its monetary policy released late Monday.

The world's second-largest economy has been under downward pressure after abandoning its stringent pandemic restrictions late last year, as the prolonged property downturn weighed on growth and dented consumer confidence.

The central bank called on the nation's financial institutions to provide equal treatment for private and state property enterprises and meet their financing needs. It warned banks against halting or withdrawing loans from property developers that operate normally.

The PBOC also said the upward pressure on prices is accumulating thanks to improved demand, but there is no foundation for long-term deflation or inflation. China fell back into deflation in October for the second time this year, fueling concerns of slowing growth.

The central bank said it will keep the yuan "basically stable" and be vigilant about pro-cyclical behaviors, disruptions to market orders and guarding against risks from exchange-rate overadjustments.


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(END) Dow Jones Newswires

11-27-23 2156ET