Monday, April 17, 2006

There has been some rumbling about renewed macro-economic measures to slow investment. Why? Just check out the below 2006 1Q figures from the PBOC Financial stability Report:


Basically, this says that loans to non-financial corporations has grown by TWICE the amount it grew at the same time last year. Whereas growth of loans to corportions was 515 billion RMB during 1Q of 2005, it was 1.09 trillion the past quarter. In March alone, loans to enterprises grew by 457 billion, or 160 billion more than it grew in March 2005.

But rest assure, with the political alignment in the Politburo now, the center will easily impose a retrenchment to prevent an inflationary crisis.

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