Arab Today, arab today china\s central bank expected to maintain monetary stance
Last Updated : GMT 16:29:18
Arab Today, arab today
Arab Today, arab today

China\'s central bank expected to maintain monetary stance

Arab Today, arab today

Arab Today, arab today China\'s central bank expected to maintain monetary stance

Beijing - XINHUA

Higher-than-expected growth in China's new RMB lending and total social financing in November indicates that China's liquidity conditions remain favorable for 7.5 percent or higher GDP growth, and the central bank is likely to maintain its monetary stance, economists said. Market participants had been worried over possible credit tightening measures by the central bank, the People's Bank of China (PBOC), due to a jump in yields on Chinese government bonds (CGB) in mid-November. Last month, CGB yields soared, with the 10-year CGB yield jumping to 4.7 percent on Nov. 20 -- the highest level in nine years -- from a mere 3.23 percent in mid-June. The 10-year CGB yield retreated to 4.43 percent on Nov. 27. At the time, markets worried that the rise in bond yields was engineered by the PBOC to reduce leverage and slow credit growth. BEATING EXPECTATIONS The PBOC on Wednesday released figures on November's money supply, new loans and total social financing (TSF), which is a broader measure of liquidity in the world's second-largest economy. New bank loans and TSF rebounded notably to 624.6 billion yuan (102 billion U.S. dollars) and 1,230 billion yuan in November, PBOC data revealed. November's new loans represented an increase of 118.6 billion yuan, or 23.4 percent, from the previous month. The figure was also well beyond the market forecast of 580 billion yuan. TSF in November was 43.7 percent higher than in October, a 374 billion yuan month-on-month increase. It also beat market expectations of 920 billion yuan. Broad money supply (M2), which covers cash in circulation and all deposits, rose 14.2 percent year on year in November, down from the 14.3-percent growth rate in October, which was in line with market expectations. "Growth in both M2 money supply and bank loans, the more reliable indicators for the liquidity available for the real economy, cooled only marginally to 14.2 percent year on year last month, [which] suggested that 'liquidity tightening' talks are exaggerated," an HSBC research team led by chief China economist Qu Hongbin said in a note. A research team with the Bank of America Merrill Lynch led by chief China economist Lu Ting attributed robust credit demand to three reasons. Lu's team said the rebound of GDP growth to 7.8 percent in the third quarter from 7.5 percent in the second quarter boosted confidence. Another factor is that messages from the Third Plenum of the 18th CPC Central Committee last month were overall positive for confidence. Finally, external demand seems to have improved thanks to the recovery in the U.S. and euro zone, as evidenced by the better-than-expected 12.7 percent export growth in November. Lu Ting said he believes that the recent rise in bond yields and average interbank rates was mainly due to the bottom-up interest rate liberalization by banks and other financial institutions in China.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china\s central bank expected to maintain monetary stance Arab Today, arab today china\s central bank expected to maintain monetary stance

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china\s central bank expected to maintain monetary stance Arab Today, arab today china\s central bank expected to maintain monetary stance

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today US travel restrictions are still 'Muslim ban'

GMT 00:54 2017 Tuesday ,26 September

US travel restrictions are still 'Muslim ban'
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israel builds settlements 'at high rate'

GMT 01:04 2017 Tuesday ,26 September

Israel builds settlements 'at high rate'
Arab Today, arab today Saudi clerics use Twitter, textbooks

GMT 10:13 2017 Tuesday ,26 September

Saudi clerics use Twitter, textbooks
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Personality study finds fish have hidden depths

GMT 00:43 2017 Tuesday ,26 September

Personality study finds fish have hidden depths
Arab Today, arab today China refuses visa to elderly India runner

GMT 15:01 2017 Tuesday ,26 September

China refuses visa to elderly India runner
Arab Today, arab today Botanical gardens a lifeboat

GMT 02:50 2017 Tuesday ,26 September

Botanical gardens a lifeboat
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Chevrolet's first 9-speed auto debuts

GMT 18:58 2017 Monday ,25 September

Chevrolet's first 9-speed auto debuts
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Mai Kassab happy for participating in new film

GMT 09:33 2017 Friday ,22 September

Mai Kassab happy for participating in new film
Arab Today, arab today Conditions growing dire    

GMT 09:22 2017 Monday ,25 September

Conditions growing dire    

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 16:08 2017 Monday ,25 September

'World's heaviest woman' dies

GMT 12:09 2017 Sunday ,24 September

Taxi! Transport gets an overhaul

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday