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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (17500)	12/3/2004 8:24:59 AM
From: mishedlo	Respond to of 116555

China to continue curbing bank loans Friday, December 3, 2004 6:29:52 AM afxpress.com SHANGHAI (AFX) - China will gradually curb bank loans to state enterprises but will make adequate capital available to key sectors of the economy to prevent a credit crunch, state press reported The country will provide cash to industries that need further development while continuing to curb rapid investments in some hot sectors, the Shanghai Daily said, quoting comments from Xu Jiayin, head of the loans supervision department for the central bank in Shanghai "To greatly reduce bank loans regardless of the industries may cause tight money supply to some state enterprises needing government support and create even more bad debts," Xu said at the 2004 Asian Venture Forum "For overheated sectors, I do not mean there will be any change in the policy because a relaxation (in the curbs) will probably lead to a rise in investment." Beijing has struggled to bring investment under control around the country with a series of lending restrictions including an interest rate hike in October, the first in nearly a decade Investment in fixed-assets, a basic measure of spending on major infrastructure projects spearheaded by the government and state enterprises, has been driving much of China's heated economic growth. For the three months to September, China's economy grew 9.1 pct compared with a year earlier, after growth of 9.8 pct in the first quarter and 9.6 pct in the second Chinese President Hu Jintao has said China's economy would grow around nine pct in 2004. "We are closely monitoring the effects of the macro-economic measures and as far as I am concerned, the government's tighter policies have worked well this year to secure a healthy economy," Xu said Total new bank lending in China totalled 1.8 trln yuan in the first 10 months of this year, down nearly 700 bln yuan from a year earlier, the report said