China sees new yuan loans rise to US$76b
Source: Xinhua |
October 15, 2009, Thursday
|
Print Edition
Print Edition
CHINA'S new yuan-denominated loans in September rose to 516.7 billion yuan (US$75.68 billion) from August's 410.4 billion yuan, the People's Bank of China, the central bank, said yesterday.
New yuan-denominated loans in the first nine months of this year stood at 8.67 trillion yuan, 5.19 trillion yuan more than the same period last year.
China's foreign exchange reserves, already the world's largest, hit a new high of US$2.27 trillion at the end of September, the PBOC said.
Both figures added to the view that the world's third-largest economy was on track for recovery based on a moderately easy monetary policy, said Ding Zhijie, deputy director of the school of banking and finance of the University of International Business and Economics.
China's monthly new loans had slowed from June's high of 1.53 trillion yuan to 355.9 billion yuan in July as a result of banks curbing credit and the PBOC's open market operations. The figure rose to 410.4 billion yuan in August and then to 516.7 billion yuan in September.
The broad measure of money supply, M2, which covers cash in circulation and all deposits, jumped 29.31 percent from a year earlier to 58.54 trillion yuan at the end of September.
The narrow measure of money supply, M1 (cash in circulation plus current corporate deposits), climbed 29.51 percent to 20.17 trillion yuan.
Ding said the money supply data were sufficient to meet the demands of economic growth for the remaining months of the year and a moderately loose monetary policy would be maintained as the economic rebound is yet to be stable, firm and balanced.
Liu Yuhui, a researcher with the Institute of Finance and Banking of the Chinese Academy of Social Sciences, predicted there would not be an obvious contraction in new loans in the fourth quarter as local governments' investments would not drop sharply due to a huge fund injection by the central government.
China's reserves are more than double those of No. 2 holder Japan, which has US$1.05 trillion.
China is also the biggest foreign creditor of the United States. Chinese leaders have expressed concern about the stability of the US dollar.
New yuan-denominated loans in the first nine months of this year stood at 8.67 trillion yuan, 5.19 trillion yuan more than the same period last year.
China's foreign exchange reserves, already the world's largest, hit a new high of US$2.27 trillion at the end of September, the PBOC said.
Both figures added to the view that the world's third-largest economy was on track for recovery based on a moderately easy monetary policy, said Ding Zhijie, deputy director of the school of banking and finance of the University of International Business and Economics.
China's monthly new loans had slowed from June's high of 1.53 trillion yuan to 355.9 billion yuan in July as a result of banks curbing credit and the PBOC's open market operations. The figure rose to 410.4 billion yuan in August and then to 516.7 billion yuan in September.
The broad measure of money supply, M2, which covers cash in circulation and all deposits, jumped 29.31 percent from a year earlier to 58.54 trillion yuan at the end of September.
The narrow measure of money supply, M1 (cash in circulation plus current corporate deposits), climbed 29.51 percent to 20.17 trillion yuan.
Ding said the money supply data were sufficient to meet the demands of economic growth for the remaining months of the year and a moderately loose monetary policy would be maintained as the economic rebound is yet to be stable, firm and balanced.
Liu Yuhui, a researcher with the Institute of Finance and Banking of the Chinese Academy of Social Sciences, predicted there would not be an obvious contraction in new loans in the fourth quarter as local governments' investments would not drop sharply due to a huge fund injection by the central government.
China's reserves are more than double those of No. 2 holder Japan, which has US$1.05 trillion.
China is also the biggest foreign creditor of the United States. Chinese leaders have expressed concern about the stability of the US dollar.
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