Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: RealMuLan who wrote (3394)	7/21/2004 10:34:56 AM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

China lending curbs hurt firms BEIJING: China's measures to rein in the economy are causing financing trouble for many companies and have failed to ease a worsening energy crunch, a top economist said. “Excessive controls over short-term loans have brought about new difficulties in production and business activities for enterprises,” the Economic Daily quoted Qiu Xiaohua, vice-chief of the State Statistical Bureau, as saying. Qiu said the austerity measures, which have included curbs on lending to some red-hot sectors such as steel, had exacerbated corporate debt. He did not elaborate. Beijing also has tightened credit by forcing banks to hold more money in reserve instead of lending it out. Power shortages were also still a major problem and had spread to two-thirds of China's provinces and regions despite the government's success in cooling economic growth, Qiu said. “Currently, there are still some striking problems that have yet to be resolved despite sound developing trends in the macro-economy,” he said. Qiu's remarks followed weaker-than-expected economic growth of 9.6% in the second quarter which lifted hopes of a soft landing for the fast-growing economy. New loans in the first half 2004 totalled 1.43 trillion yuan (US$173bil), down 350 billion yuan from a year earlier. Much of the drop came in June, when banks lent 240 billion yuan less than a year earlier, central bank data showed last week. – Reuters biz.thestar.com.my