SHANGHAI, Jun. 17 (SMM) – SHFE metals opened lower and closed with losses last Friday, with silver losing 3.88%, copper sliding 2.80% and zinc trimming 2.06%. The National Energy Administration (NEA) released data on power consumption in May. The National Development & Reform Commission (NDRC) reviewed and approved a paltry four projects during May, a staggering fall from the 239 projects recorded in the same period last year.
Banks Suspend Some Low-Interest and Trade Lending
Banks’ new loans to local financing enterprises fell sharply in May. Many projects have been approved by local governments, but failed to secure loans from banks. Some banks have suspended lending to companies engaging in trade, except for companies with strong financial strength. Banks are now more concerned with risks and price factors when selecting clients. Some banks have halted review and approval of housing and wholesale borrowings.
NEA: Power Consumption Grows 5.0% YoY to 426.9 Billion Kwh in May
New Funds Outstanding for Forex Plunge 77% MoM to RMB 66.86 Bln in May
New funds outstanding for forex by Chinese financial institutions amounted to RMB 66.86 billion in May, a steep decline from April’s RMB 294.35 billion, March’s RMB 236.3 billion, February’s RMB 295.43 billion and January’s RMB 683.66 billion.
NDRC Reviews and Approves Four Projects in May vs 239 Last May
The number of projects reviewed and approved by the NDRC hit 239 in May 2012, but tumbled to four this May.
China to See Slowest GDP Growth in Q2, Possibility of Further Loose Policies Slim
Zhao Qingming, expert on international financial issues, said the Chinese economy will register the lowest growth in the second quarter this year before picking up some in the third and fourth quarter and expects China’s GDP to grow at least 7.5% for the entire year of 2013. According to Mr Zhao, the scale of fiscal and monetary policy will outstrip that of last year, but the likelihood of rolling out policies to boost consumption is slim in the future.
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