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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (2740)	3/10/2004 4:23:08 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

China may impose more curbs on bank lending New reserve requirements expected to cut bank lending and cool overheating economy CHINA is mulling over a new plan to restrain lending by some of its commercial banks amid mounting concerns that the economy is growing too fast, state press reported yesterday. Also, China has yet to decide whether to bail out any more state banks after injecting US$45 billion into two of the Big Four, the vice-central bank chief was quoted yesterday as saying, adding that such rescues did not constitute a 'free lunch'. 'The People's Bank of China is in discussions to launch a new set of reserve requirements for mainland banks to support a healthy macro-economic development,' central bank governor Zhou Xiaochuan was quoted as saying by Xinhua news agency. He said that by 'diversifying' the reserve requirement, banks with better quality assets and less operational risk could then expand more quickly, while forcing the more troubled lenders to trim loans. 'It is most likely that the central bank will hike the reserve requirement for state-owned commercial lenders while maintaining the ratio for joint-stock banks,' said Han Zhenguo, a Haitong Securities analyst. 'It will lead to an average higher reserve requirement in the domestic banking industry, which will help cool an overheated economy from excessive lending,' he said. business-times.asia1.com.sg