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To: Jill who wrote (107331)	3/4/1999 11:09:00 PM
From: Mohan Marette	Respond to of 176387

<--China--> Urges More Consumer Loans,encourages consumer spending to fuel growth. Nice write up you got there from the Fool,thanks. Now look what China is doing to boost consumer spending:- "..As part of these efforts, the Industrial & Commercial Bank of China, one of the country's largest state-owned commercial banks, has said it will begin to lend for consumer goods, such as household appliances and computers, that cost more than 3,000 yuan (CNY) ($1=CNY8.28). =============================== 3/3/99 BEIJING, CHINA - China's central bank said Wednesday it will allow all commercial banks to extend consumer loans and engage in other consumer services this year as part of a bid to boost consumption and fuel economic growth. The People's Bank of China is urging all financial institutions to increase consumer credit and expand services, including allotting more loans for home and car purchases, Xinhua News Agency reported. Individual housing loans can be extended for the purchase of all types of houses, and the down payment required for housing and automobiles loans will be reduced to no more than 20% of the total cost, the report said. The PBOC is also urging commercial banks to open new consumer businesses, such as loans for education and tourism, and to promote the use of credit cards and other bank cards. According to Xinhua, the PBOC noted that all commercial banks must report the accounting details of their consumer credit business to the central bank and urged its branches to strengthen supervision and coordination of commercial banks. Despite three interest rate cuts in the past year, consumption has remained weak as fears of growing unemployment rattle consumer confidence. Retail prices have slipped for more than a year, with the benchmark inflation measure, the retail price index, dropping 2.6% in 1998 from 1997. The government, however, hopes to revive domestic demand by encouraging banks to lend more for ordinary people to buy homes, cars and other high-expense items. As part of these efforts, the Industrial & Commercial Bank of China, one of the country's largest state-owned commercial banks, has said it will begin to lend for consumer goods, such as household appliances and computers, that cost more than 3,000 yuan (CNY) ($1=CNY8.28). Individual savings at China's financial institutions totaled CNY5 trillion at the end of last year, an amount the government wants to mobilize to fuel the economy. [Mohan: Wow that is lot of moolah that the Chinese got stashed away in the bank!] (source: Xinhua)