New bank loans in April may stand near 700 billion yuan

17:07, May 07, 2010      

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According to estimates by several commercial banks, China's new bank loans in April may stand near 700 billion yuan, or 102.5 billion U.S. dollars. Analysts pointed out that this figure is "rational" and is in line with the regulatory requirements.

"If credit expansion in April is less than 700 billion yuan, there will be enough room for credit issue in the new two months," said a banking analyst.

Wang Tao, chief economist with UBS China, gives a more conservative estimate that new loans in April will be around 500 to 600 billion yuan.

The market seems to indicate that the possibility of huge credit expansion is diminishing. Some institutions even worry that the annual target of 7.5 trillion yuan will be hard to reach.

Huge credit expansion in 2009 has guaranteed enterprises will have sufficient capital, and the tightening policies won't lead to inadequate cash flow, according to a report released by Guosen Securities.

By People's Daily Online


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