Banking

China to keep new loan target unchanged

(Agencies)
Updated: 2010-12-14 13:54
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China will probably target about 7.5 trillion yuan ($1.1 trillion) in new loans next year, level with its 2010 target, Reuters reported Tuesday, citing China Securities Journal, an indication that policy could be slightly looser than expected.

"The Chinese economy is very big now and a target of 7.5 trillion yuan in new loans will not trigger all-round inflation," the newspaper quoted sources as saying.

A Reuters poll of 26 economists on Monday forecast that Beijing will aim for 7 trillion yuan in new lending next year.

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The report also said the government would likely aim for 16 percent in the wider M2 measure of money growth, which would mark a slowdown from this year's roughly 20 percent pace.

It added that China's five biggest lenders were aiming to maintain new lending at unchanged levels next year from this year, while smaller banks were talking about an expansion.