China new loans rebound in August: central bankChina's new loans rebounded in August, the central bank said Friday, beating expectations as lenders continued to pump money into the economic recovery effort, and easing fears of tighter credit. The People's Bank of China The People's Bank of China (PBC or PBOC) (Simplified Chinese: 中国人民银行; Traditional Chinese: (PBoC) said 410.4 billion yuan (60.1 billion dollars) was lent last month, up from the 355.9 billion yuan in July. The August figure, which is much higher than forecasts of 320 billion yuan in loans, indicates that the government is not putting a squeeze on credit, as many had fears. "The solid bank lending number is consistent with assurances from senior officials in recent weeks that they intend to keep policy accommodative in the near term," Brian Jackson Brian Jackson is the name of:
Canada's central bank, established under the Bank of Canada Act (1934). It was founded during the Great Depression to regulate credit and currency. The Bank acts as the Canadian government's fiscal agent and has the sole right to issue paper money. , said. Worries had been growing in China that Beijing was looking to begin restricting lending, which reached 1.53 trillion yuan in June and a massive 7.4 trillion yuan in the first six months. Economists said the central bank was unlikely to rush into tightening credit conditions before the end of 2009, though it may fine-tune monetary policy to mop up excess liquidity. "Policymakers will seek to maintain the stability and constancy con·stan·cy n. 1. Steadfastness, as in purpose or affection; faithfulness. 2. The condition or quality of being constant; changelessness. Noun 1. of the monetary policy through the end of this year as the recovery started strengthening," said Tang Jianwei, an economist with Bank of Communications Bank of Communications Limited (BoCom or BoComm) HKSE: 3328 (Simplified Chinese: 交通银行; Traditional Chinese: 交通銀行 . The Chinese economy grew 7.9 percent in the second quarter after 6.1 percent in the first three months. Economists said the increased momentum was largely due to the unprecedented lending growth. However, the lending spree has raised concerns that much of the money has been funnelled into the stock and property markets for quick profit, rather than helping the real economy. Policy makers have acknowledged concerns that asset bubbles may be building up. Su Ning, the vice governor of the PBoC, said last week it would use regulatory tools to adjust banks' lending activities. "New loan creation is easing as the front-loading of new lending runs its course and banks become more mindful of credit risk," Jing Ulrich Jing Ulrich (李晶）(b. 1967, Beijing, China) is managing director and chairman of JPMorgan's China equities business.[1][2] She is in charge of expanding JPMorgan's equity business in China and worldwide by strengthening the company's , a Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. based-economist with JP Morgan, said in a research note. "Steps are being taken to ensure adherence to sound lending practices," she said. 
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion