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Sign of slight slowdown in growth
(AP)
Updated: 2006-07-10 15:41
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New local currency loans totaled 360 billion yuan (US$45 billion; euro35.22 billion) in June bringing the total for the first half of the year to 2.14 trillion yuan (US$267.5 billion; euro209.34 billion), the report said.
The lending figure for June was 102.7 billion yuan (US$12.8 billion; euro10.02 billion) less than in June 2005.
But the first half figure for new loans equals 85.6 percent of the government's full-year target of 2.5 trillion yuan (US$312.5 billion; euro244.56 billion). Forecasts suggest the total for the year will well exceed 3 trillion yuan (US$375 billion; euro293.47 billion).
The report said that the slight decline in growth in key data suggest that efforts to tighten credit may finally be taking hold.
However, recent reports citing government researchers have said economic growth is still likely to be at about 10 percent this year, supported both by strong investment and by robust export growth.
"It is far too early to declare victory in the fight to control liquidity, and we still think more reserve requirement hikes will be necessary," Stephen Green, senior economist with Standard Chartered Bank in Shanghai said in a research note issued Monday.
But he added "these numbers suggest that the PBoC is fighting back effectively."