Latest News:  
Beijing   Sunny    26 / 14 ℃  City Forecast

English>>China Business

Finance vehicle loans to local govts up in H1 (4)

By Wang Xiaotian (China Daily)

13:27, September 04, 2012

Li Lihui, president of Bank of China, said Bank of China plans to reduce the amount of such loans it carries on its books and strictly control its lending to industries that have too much production capacity and use large amounts of energy.

Any economic easing policies that the government adopts to shore up the economy will probably help to ensure more such loans are repaid and lessen the capital pressures that are weighing on local governments in their infrastructure projects, said Xu Wenbin, an analyst at Bank of Communications.

But the repayments might become less certain after decision-makers at the provincial or municipal levels announce local investment plans valued at 7 trillion or even 8 trillion yuan, Guo said.

"The projects are a new threat, as they will add to local government liabilities and make repayment of former loans even harder."

Moody's Investors Service Inc said in a newsletter on Monday that a net increase in local government debt amounting to only 0.001 percent of the country's GDP in 2011 - evidence that such debts had been effectively contained.

【1】 【2】 【3】 【4】

News we recommend:
Prices fly for Angry Birds' merchandise Real Economy Faces Real Challenges Spirited into the world of e-commerce
E-shopping fuels domestic consumption Lake cleanup pays off big with tourist dividends China's beauty industry profits from a makeover
Grape expectations from Argentina  Secrets of the Chinese travelers Answering the E-Waste Question


Related Reading

Leave your comment0 comments

  1. Name


Selections for you

  1. Navy vessel "Zhenghe" arrives at Indonesia

  2. Moscow holds Int'l Military Music Festival

  3. Frictions Over Renewable Energy

  4. Top 10 Chinese-language films

  5. School beauties of Beijing Film Academy

  6. American Gun Show

Most Popular


  1. Chinese firms exposed to malicious IPR allegations
  2. Obama's 'forward agenda' hard to garner support
  3. Vigilant Internet watchdogs deter corrupt officials
  4. Accusations of China's arms exports unfair
  5. US position on Diaoyu Islands very dangerous
  6. U.S. slows Israel pace to foil Iran's nuclear plan
  7. All officials must work to change negative image
  8. Right wing in Japan poisons Sino-Japanese ties
  9. Editorial: Wary of investment risks
  10. Why political solution to Syria's crisis always fail?

What's happening in China

Parents splurge on freshmen

  1. High speed rail may need to be rebuilt
  2. Huge flood peak passes Three Gorges Dam
  3. Healthcare system to get 400b yuan injection
  4. Vigilant Internet watchdogs deter corrupt officials
  5. 'Innovation, reform' set pace at new school

China Features

  1. Chinese investment good for the host nations
  2. Unforgetable images of London Olympics
  3. Clinton's high profile in S. Pacific with great pain
  4. Lovely animals all over the world
  5. Regimen: spleen-friendly diets during White Dew

PD Online Data

  1. Ministry of Water Resources
  2. Ministry of Railways
  3. People's Bank of China
  4. Ministry of Health
  5. Ministry of Culture