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BIZCHINA> Top Biz News
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China's Feb new yuan loans reach 1.1 trillion yuan
By Xin Zhiming (chinadaily.com.cn)
Updated: 2009-03-03 17:44 China's new yuan loans reached 1.1 trillion yuan ($161 billion) in February thanks to the rapidly increasing government spending in infrastructure to hold back the economic slowdown, according to a source close to the matter.
The liquidity increase might add some uncertainties to the country's monetary policy-making in the fourth quarter. Analysts have warned that if the economy recovers in the second half of this year, the ample liquidity as a result of the massive government stimulus could lead to high inflation. The China Southwest Securities said in a report that China's new yuan loans may reach 6 trillion yuan for the whole year. A report by Haitong Securities said they could amount to 5.5 trillion yuan. (For more biz stories, please visit Industries)
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