09 January 2012 08:42 [Source: ICIS news]
SINGAPORE (ICIS)--China’s new yuan-denominated lending totalled yuan (CNY) 7,470bn ($1,184bn) in 2011, down by 6% from the CNY7,950bn lent in 2010, The People's Bank of China (PBOC) said in a statement on Sunday.
By the end of 2011, the outstanding broad money supply (M2), which covers cash in circulation and all deposits, rose by 13.6% year on year to CNY8,516bn, according to the statement on its website.
M1, a narrow measure of money supply, which covers cash in circulation plus demand deposits, increased by 7.9% year on year to CNY2,898bn by the end of 2011, PBOC said.
New loans totalled CNY640.5bn in December 2011, compared with CNY562.2bn in the previous month, according to the statement.
“New lending in December increased from November because of increased bank deposits at the end of the year and the increased credit in the banking sector,” a financial analyst said in Mandarin.
“We predict the central bank will continue to loosen its credit in the coming months, with a lower reserve ratio in January this year,” the analyst added.
New lending in China is forecast to be at above CNY1,000bn in January this year and total CNY8,000bn-8,500bn in 2012, according to a source from China’s Bank of Communications.
Additional reporting by Adele Zhu
($1 = CNY6.31)
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
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