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

To: RealMuLan who wrote (3057)	4/11/2004 11:29:03 AM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

China Lifts Bank Reserve Ratio to 7.5% to Curb Growth (Update2) April 11 (Bloomberg) -- China raised the percentage of deposits banks must set aside as reserves, tightening monetary policy to cool Asia's second-largest economy after industrial production grew at its fastest pace in more than a year. The reserve ratio for commercial banks will rise to 7.5 percent from 7 percent starting April 25, the central People's Bank of China said on its Web site. The requirement for some banks with lower than average capital adequacy ratios will increase to 8 percent from 7.5 percent, it said. China's government is trying to slow credit growth to curb inflation and prevent excess investment in industries such as steel, cement and aluminum. M2 money supply rose 19.4 percent in February, 2.4 percentage points higher than the central bank's target for this year. ``There have been problems of fast credit growth and rising inflationary pressure since the beginning of this year,'' the statement said. ``Fast credit growth will cause inflation and may lead to the accumulation of new bad loans and financial risk.'' quote.bloomberg.com