China overshoots loan target

first_img whatsapp China overshoots loan target Share CHINA overshot its bank loan target in 2010 and finished the year with money growth still running too fast, underscoring the need for more decisive policy tightening to keep inflation in check.At the same time, a record $199bn surge in foreign exchange reserves in the fourth quarter pushed China’s stockpile, already the world’s biggest, to $2.85 trillion, highlighting that money streaming in from abroad was complicating policy efforts at home.Chinese banks issued 7.95 trillion yuan (£1 trillion) in new loans last year, the central bank said yesterday, more than the 7.5 trillion yuan that the government wanted for the full year. The broad M2 measure of money supply grew 19.7 per cent, also topping the official target of 17 per cent.“Lending is still excessive and China’s process of monetary normalisation has not finished yet,” said Wu Tujin, economist with Guosen Securities in Shenzhen. “That means China will still face high pressure from inflation and asset bubbles.”More than just an economic issue, high-speed money and credit growth has become a political concern, helping propel Chinese consumer inflation to its fastest in more than two years.Determined to rein in rising prices, a source of public discontent, the government declared late last year that it would shift to a tighter monetary policy stance. Some effects of that could be seen in the data for the final month of the year.Chinese banks extended 481bn yuan in new loans in December, down from 564bn yuan in November and the lowest in one year. Tuesday 11 January 2011 7:45 pm KCS-content More From Our Partners Mark Eaton, former NBA All-Star, dead at 64nypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.org whatsapp Show Comments ▼ Tags: NULLlast_img read more