Arab Today, arab today china\s central bank expected to maintain monetary stance
Last Updated : GMT 12:45:25
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.

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 Nasima Gamei revives heritage in jewelries

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today Saudis await visitors but will they come?

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model
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