China's New Bank Loans Exceed RMB 1.5 tln in June

BEIJING, July 9 -- China's new yuan-denominated loans stood at 1.53 trillion yuan (about 223.96 billion U.S. dollars) in June, the People's Bank of China said Wednesday.

    The June figure more than doubled the 664.5 billion yuan in May, bringing new yuan-denominated loans in the first half to 7.37 trillion yuan, far exceeding the full-year target of 5 trillion yuan.

    Renminbi deposits increased 2 trillion yuan, compared with a 1.33-trillion-yuan growth in May, said the bank.

    China Banking Regulatory Commission (CBRC) official Wang Huaqing Tuesday had warned of possible risks in the financial system posed by the current rapid loan growth and a concentration of loans in certain industries and businesses.

    Zhu Baoliang, an analyst with the State Information Center, a research institute of the National Development and Reform Commission, told Xinhua China's deflation might abate at the end this year, making it hard for the central bank to balance monetary polices in lending while guarding against inflation.

    Though worries on inflation increased along with soaring credit, China or the world would not suffer inflation before the global economy began continuous recovery, Zhang Jianhua, director of the Research Institute of the People's Bank of China, told Xinhua Wednesday.

    Zuo Xiaolei, an economist with China Galaxy Securities, said the genuine inflation anticipation would not appear at the beginning of the economic recovery, but would show up when effective demand was stimulated, with the economy increasing and prices soaring fast.

    Along with a recovery of the global economy, the stimulus policies of different central banks should gradually withdraw, though the methods, time and rhythms of withdrawal should be carefully studied, said He Fan, Assistant Director of the Institute of World Economics and Politics of the Chinese Academy of Social Sciences.

    (Source: Xinhua)