China's Central Bank Chief Pan Gongsheng: De-emphasize Loan Volume Targets, Continue Cracking Down on "Involution-Style" Competition in Finance - finance.biggo.com

China's central bank governor, Pan Gongsheng, has signalled a shift in how the People's Bank of China assesses credit expansion, calling for less emphasis on loan volume targets. The remarks suggest policymakers are moving away from treating raw lending growth as a primary gauge of financial health, and toward a more quality-focused approach to credit allocation.

Pan also reiterated a commitment to curbing what he termed "involution-style" competition in finance — a reference to destructive, low-margin rivalry in which institutions chase the same borrowers or business lines without adding real value. Such competition can compress margins, encourage excessive risk-taking, and weaken the resilience of the financial system over time.

For markets, the significance lies in the policy direction rather than any single figure. A reduced focus on loan quotas may mean credit growth becomes a less reliable signal of policy intent, shifting attention toward lending quality, pricing discipline, and profitability. Watch for follow-through in regulatory guidance and how banks adjust their lending and competition strategies in response.