Yuan lending by Chinese banks slowed in November under
tightening measures designed to rein in growth.
Yuan-denominated loans increased 17.03 percent in November
year-on-year - 0.63 of a percentage point lower than last
month.
China's broad M2 money supply grew 18.45 percent year-on-year in
November, also slightly lower than the past two months, the central
bank said yesterday.
New yuan loans in November amounted to 87.4 billion yuan,
compared with 136.1 billion yuan in October, and 283.5 billion yuan
in September, marking a continual downward trend.
Chinese banks tend to extend more loans in the early months of
the year, but are often ordered to make cuts when overall loans
exceed the limit set by regulators.
Banks granted 3.58 trillion yuan in new loans in the first 11
months of the year, compared with 3.18 trillion for all of 2006,
indicating there is still ample liquidity in the market, analysts
said.
"Credit growth showed visible deceleration in November amid the
credit tightening measures, but money supply growth remained
strong," said Liang Hong and Song Yu from Goldman Sachs.
(China Daily December 11, 2007)
