Record high credit

The country's bank credit rose rapidly in the first quarter. Credit extended by banks hit 4.58 trillion yuan, representing about 90 percent of the annual target.

The country's bank credit rose rapidly in the first quarter. Credit extended by banks hit 4.58 trillion yuan, representing about 90 percent of the annual target. [CFP]

Premier Wen Jiabao said on March 5 at the opening of the annual session of the National People's Congress, the national legislature, that new yuan-denominated loans this year were expected to reach 5 trillion yuan.

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.

Nevertheless, mid-and-long-term loans accounted for more than half of the new bank credit in March. These loans would help the real economy to recover, said analysts.

The monetary policy committee of the People's Bank of China, or the central bank, has said at its first-quarter meeting that the central bank would continue "the appropriately easy monetary policy" in coming months to boost investor confidence.

(Xinhua News Agency April 16, 2009)