China's private financing to hit 18t yuan in 2015

Aggregate private financing, a liquidity measure that sums up funds offered by China's domestic suppliers, will amount to $2.9 billion in 2015.

BEIJING - Aggregate private financing, a liquidity measure that sums up funds offered by China's domestic suppliers, will amount to 18 trillion yuan ($2.9 billion) in 2015.

The figure is 13.6 percent up on last year, according to a report by the Bank of Communications (BOC) Tuesday, alongside a 12.5 percent expansion of M2.

The report predicted that new loans, the biggest part of social financing, will hit 11 trillion yuan in 2015, up 13.5 percent.

Net new financing by corporate bonds and stocks, the second largest source, is forecast to account for 20 percent of the total at 3.6 trillion yuan.

BOC chief economist Lian Ping predicted that interest rates will be cut by a small margin in the first half of 2015 but the required reserve ratio will be cut by 0.5-1.5 percentage points.