chinas central bank has relaunched its pledged supplementary lending program after pausing it for two and a half years signaling beijings efforts to shore up economic growth the peoples bank of china issued a net 1082 billion yuan 152 billion of psl to china development bank exportimport bank of china and agricultural development bank of china in september according to a statement issued by the central bank on saturday this is the first monthly increase in the psl since february 2020 and brings the pbocs outstanding psl amount to cny265 trillion according to the official data chinas central bank introduced the psl in 2014 to provide financing to the abovementioned policy banks for the nations shantytown renovation program which helped reverse the property downturn during that time but also created more bubbles in the market the pboc didnt specify how the newlyinjected funds would be used but the psl came after chinas cabinet the state council called for the state policy banks to fund more of the countrys infrastructure projects as the worlds secondlargest economy faces increased headwinds from its draconian covid19 policy and prolonged property slump the state council had earlier announced a cny800 billion funding plan in june for the three policy banks to support the countrys infrastructure projects which was followed by two additional tranches of cny300 billion in special funds in july and august respectively citigroup economists believe the relaunching of the psl could also be used to support the local property sector by offering loans to ensure the delivery of homes