Bank lending exceeds estimates
(13 May 2010 – China) Pressure is increasing on China’s government to lift interest rates and let the Yuan appreciate, as the fast growing economy’s bank lending and property prices soar.
Consumer prices rose at the fastest pace in 18 months when it leaped a further 2.8 percent in April.
Real estate prices also increase soaring 12.8 percent, the statistics bureau confirmed on Wednesday.
The Shanghai Composite Index dropped 1.9 percent at closing, the lowest point in a year, and overall has experienced a total reduction of 21 percent since November.
The People’s Bank of China reported new lending of 774 billion yuan (A$172 billion) for the month of April; the new lending figure was a lot more than any of Bloomberg’s 24 economists previously forecast.
Zhao Zifeng, who oversees around A$11.3 billion at China International Fund Management, said that if the country’s inflation is not contained, the central bank will be forced to raise interest rates.
Housing prices will need to be gauged closely in the coming months as previous crackdown measures were not put in place long ago and more tightening could follow, Mr Zifeng added.
China's government aims to contain full-year inflation at 3 percent and avert property bubbles after record credit growth drove an economic rebound.
Real estate prices also increase soaring 12.8 percent, the statistics bureau confirmed on Wednesday.
The Shanghai Composite Index dropped 1.9 percent at closing, the lowest point in a year, and overall has experienced a total reduction of 21 percent since November.
The People’s Bank of China reported new lending of 774 billion yuan (A$172 billion) for the month of April; the new lending figure was a lot more than any of Bloomberg’s 24 economists previously forecast.
Zhao Zifeng, who oversees around A$11.3 billion at China International Fund Management, said that if the country’s inflation is not contained, the central bank will be forced to raise interest rates.
Housing prices will need to be gauged closely in the coming months as previous crackdown measures were not put in place long ago and more tightening could follow, Mr Zifeng added.
China's government aims to contain full-year inflation at 3 percent and avert property bubbles after record credit growth drove an economic rebound.
Subscribe