Home>News Center>China
       
 

Finance operates on 'right track'
By Zhang Dingming (China Daily)
Updated: 2004-10-15 22:53

China's money supply continued to increase at a "basically appropriate" pace in September, boosting confidence that the State's tightening measures  to bring the fast-growing economy to a soft-landing are working.

M2, the broad measure of money supply, grew by 13.9 per cent on a year-on-year basis to 24.4 trillion yuan (US$2.9 trillion) at the end of last month, the People's Bank of China (PBOC), the nation's central bank, said on Friday.

September's M2 pace, which reflects aggregate demand in the economy, was 6.8 percentage points down from a year earlier, but up 0.3 percentage points from the level recorded last month, a figure many analysts feared was too slow.

"Speaking overall, the current level of money supply is basically appropriate," the PBOC said.

Outstanding renminbi loans rose by 13.6 per cent on a year-on-year basis to 17.3 trillion yuan (US$2.08 trillion) at the end of September, down 9.9 percentage points from a year earlier and down 0.5 percentage points from August.

Renminbi deposits stood at 23.5 trillion yuan (US$2.8 trillion), up 15.8 per cent from a year earlier.

"Overall, financial performance was stable, and was in line with macro management targets," the bank said.

China started to cool down frenzied fixed investment and loan growth, as well as accelerating prices, in the second half of last year. Authorities have taken a slew of measures, including three increases in bank reserve requirements that restrict banks' lending capacity; and credit curbs and land controls.

Subsequently, key indicators such as M2 and fixed investment growth numbers have dropped in recent months, but the faster-than-expected downshift has prompted new worries about an abrupt economic slowdown.

The marginal rebound in renminbi loan growth last month was a welcome sign,analysts say, but they are still worried about the tightening measures overshooting. "We are still concerned," said Li Ruoyu, an analyst with the State Information Centre.

Although M2 growth rebounded, the pace of M1, which covers cash in circulation and demand deposits, and reflects real demand more accurately, slid by 1.4 percentage points to 13.7 per cent last month, she said.

The proportion of long-term loans in total bank lending continued to grow, aggravating asset-liability mismatches at the banks, Li said, although the slowdown in short-term loan growth, which analysts say is too rapid and has led to liquidity difficulties at many small companies, was less abrupt in September.

Li said the possibility of an interest rate rise this year is slight, given the continued slowdown in monetary and loan growth and the central bank's opinion that tightening measures are working.

Some analysts are calling for an interest rate increase to contain price increases, citing the possibility of a sharp rebound in fixed investment growth.

"When M2 keeps dropping like this, the likelihood of a sharp rebound in fixed investment is slight, because the source of funding is no longer there," Li said.



 
  Today's Top News     Top China News
 

NPC weighs first law on real rights

 

   
 

Sino-Russian trade ties get shot in arm

 

   
 

Finance operates on 'right track'

 

   
 

30 dengue fever cases found in Fujian

 

   
 

Hu: Retired army officers valuable treasure

 

   
 

Yang looks forward to next space mission

 

   
  Leaders condole Chinese hostage's death
   
  Recent natural disasters cost 1,326 lives
   
  Food price rises set to continue
   
  Nation encourages rational land use
   
  Four sentenced for online porn
   
  Fake SMS looks for hotel PR personnel
   
 
  Go to Another Section  
 
 
  Story Tools  
   
  News Talk  
  It is time to prepare for Beijing - 2008  
Advertisement
         
主站蜘蛛池模板: 欧美亚洲另类视频| 久久人人爽人人爽人人av东京热 | 污污动漫在线看| 好吊日在线观看| 免费av一区二区三区| 色综合久久久久久久久五月| 国产漂亮白嫩美女在线观看| 91制片厂天美传媒鲸鱼传媒| 天天综合视频网| 下载一个黄色录像| 日本一道高清一区二区三区| 久草资源福利站| 欧美一级二级三级视频| 亚洲欧美日韩高清在线看| 窝窝午夜看片成人精品| 又粗又硬又大又爽免费视频播放 | 久久五月天婷婷| 日韩电影免费在线观看网站| 亚洲人成电影青青在线播放| 欧美日韩成人午夜免费| 亚洲精品福利网站| 狠狠ady精品| 免费乱理伦片在线直播| 精品亚洲成a人无码成a在线观看| 唐人电影社欧美一区二区| 色青青草原桃花久久综合| 国产免费久久精品99久久| 高跟丝袜美女一级毛片| 国产成人无码专区| 亚洲欧美日韩精品久久奇米色影视| 国产精品无码一区二区三级| 91福利视频免费观看| 在总受文里抢主角攻np| 99精品热视频| 夜来香电影完整版免费观看| eva樱花动漫网| 天天看天天摸色天天综合网| www.插插插| 女人18片毛片60分钟| japanmilkhdxxxxxmature| 妇女被猛烈进入在线播放|