Special Report: Global Financial Crisis
BEIJING, April 11 (Xinhua) -- Credit extended by China's banks in the first quarter hit 4.58 trillion yuan (670 billion U.S. dollars), the People's Bank of China (PBOC) said Saturday.
In March alone, new yuan-denominated loans increased 1.89 trillion yuan. It was the third straight month that new loans exceeded 1 trillion yuan.
"It is not beyond market expectations. The increase was boosted by the 4-trillion-yuan stimulus plan and showed the possibility of a faster economic recovery in China compared with other countries," said Zhang Qizuo, vice director of China International Economy Society.
Premier Wen Jiabao said on March 5 at the opening of the annual session of the National People's Congress, China's legislature, that new yuan-denominated loans this year were expected to reach 5 trillion yuan.
Historical data show the first-quarter bank credit usually accounts for more than 60 percent of the year's total.
"There is a time lag between the credit increase and actual use of capital, but the big increase will surely lay a solid foundation for the recovery of the real economy," said Zhang.
In the first quarter, the central bank withdrew 47.3 billion yuan from circulation, 78.5 billion yuan more than the same period of last year.
"The increase in currency withdrawal from circulation showed the central bank was carefully watching the credit growth," said Yuan Gangming, an economist with Tsinghua University.
Zhuang Jian, an economist at the Asian Development Bank, said the regulators should pay attention to the quality of new loans and prevent bad loans.
By the end of February, non-performing loans by Chinese banks totaled 1.53 trillion yuan, 17.5 billion yuan less than the start of the year.
The structure of credit growth was also improving. The proportion of bill financing fell to about 22 percent in March from 47 percent in February, though still much higher than the average of 5 percent.
"The decline in bill financing is a good sign. It means company activities are increasing and the credit's impact on the economy is strengthening," said Zhuang.
Through March, the M2 figure -- a broad measure of money supply,which covers cash in circulation and all deposits -- grew 25.5 percent from a year earlier to 53.06 trillion yuan.
The narrow measure of money supply, M1 (cash in circulation pluscorporate current deposits), was up 17.04 percent year on year to 17.65 trillion yuan.
"The fast rebound of M2 indicates China's liquidity is abundant. This is very important to the economic recovery. The sharp rise of M1 shows companies are increasing spending on investment and management." said Zhang Bin, an economist with Chinese Academy of Social Sciences.
China to legalize private lending in bid to ease rural credit pressure
BEIJING, March 4 (Xinhua) -- China's private lending market is estimated at about 2 trillion yuan (292 billion U.S. dollars) a year, and it's often the only source of credit in rural areas, but its growth has been constrained by its underground status.
However, private lending might soon occupy a more legitimate place in the country's capital markets, analysts said, with the People's Bank of China (PBOC) having decided to grant it legal status. Full story
China's credit extension up 103.6% year-on-year in Jan
BEIJING, Feb. 12 (Xinhua) -- Bank loans made in China in January amounted to 1.62 trillion yuan (237.19 billion U.S. dollars), an increase of 814.1 billion yuan, or 103.6 percent, from 2008's same month, the People's Bank of China, the central bank, said Thursday.
Boosted by China's ambitious economic stimulus plan, credit has been robust since late last year. Loans made nationwide stood at 771.8 billion yuan in December, up by 723.3 billion yuan from a year earlier. Full story
China's bank loans hit 1.07 trillion yuan in February
BEIJING, March 12 (Xinhua) -- China's bank credit continued to expand in February, with Renminbi loans rising to 1.07 trillion yuan (156.3 billion U.S. dollars), up 827.3 billion yuan from the same month a year ago, the People's Bank of China said Thursday.
It is the second straight month that new yuan-denominated loans exceeded 1 trillion yuan. January saw new loans hit a record 1.62 trillion yuan, double the figure from the same period last year. Full story
"No risk of deflation, loans to top 5 trillion yuan in 2009"
BEIJING, March 11 -- China's financial institutions are set to issue more than 5 trillion yuan in new loans and the country will not face any risk of deflation this year, a top central bank official said yesterday.
"The total lending this year will definitely exceed 5 trillion yuan," said Su Ning, deputy central bank governor, during the annual sessions of the parliamentary meeting and the advisory body meeting. Full story
China to stimulate growth in bank loans
BEIJING, March 4 (Xinhua) -- China's central bank said Tuesday it would ensure a "reasonable and steady" increase in bank loans this year to support the country's economic growth amid the worsening global financial crisis.
Liu Shiyu, vice-governor of the People's Bank of China (PBOC), said the country will "enhance support to the financial sectors for economic growth". Full story
China's bank loans see striking rise in Jan
BEIJING, Feb. 13 -- Chinese banks issued 1.62 trillion yuan ($237 billion) in new loans in January, up 101 percent year-on-year, prompting some economists to say the government might not cut interest rates for the time being to boost the economy.
The massive jump in lending is equal to about one-third of the loans issued in the whole of 2008, a year that began on a generally tight credit line, the central bank said yesterday. Full story
