Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
http://www.shanghaidaily.com/sp/article/2008/200812/20081216/article_384639.htm
China sees slowest rise in M2 in over 3 years
Created: 2008-12-16 0:47:38
Author:Zhang Fengming
CHINA'S money supply grew at the slowest pace in more than three years, the central bank said yesterday, underlining the challenge that it faces in bolstering liquidity.
M2, the broadest measure which includes cash and all deposits, rose 14.8 percent from a year earlier to 45.86 trillion yuan (US$6.7 trillion) at the end of November, the People's Bank of China said yesterday on its Website.
M2 grew 15 percent in October.
"China's November M2 growth came in slightly slower than expected, but policy makers seem to have already developed a plan to boost money supply next year to stimulate lending and revive growth momentum,? Sherman Chan, a Moody's Economy.com analyst, said yesterday.
The State Council, China's Cabinet, said over the weekend that it plans to grow its money supply by 17 percent in 2009 to boost the economy.
Policy direction has completely reversed course since the third quarter due to the impact of the global financial meltdown and cooling in domestic inflation. Earlier this year the central bank was still issuing treasury bills to drain excess liquidity from the system, but now the issuance of the three-year notes has been suspended while the one-year and three-month bills have been less used.
The outstanding value of yuan-denominated loans jumped 16.03 percent at the end of November from a year earlier.
Lenders extended 476.9 billion of new yuan loans last month, bringing the total to 4.14 trillion yuan for this year, already exceeding the whole-year target one month ahead of schedule.
The outstanding value of local-currency deposits rose 19.94 percent at the end of November from a year earlier. Household savings climbed 382.7 billion yuan from a month ago.
In November, China announced a 4-trillion-yuan stimulus package to be spent over the next two years.
M2, the broadest measure which includes cash and all deposits, rose 14.8 percent from a year earlier to 45.86 trillion yuan (US$6.7 trillion) at the end of November, the People's Bank of China said yesterday on its Website.
M2 grew 15 percent in October.
"China's November M2 growth came in slightly slower than expected, but policy makers seem to have already developed a plan to boost money supply next year to stimulate lending and revive growth momentum,? Sherman Chan, a Moody's Economy.com analyst, said yesterday.
The State Council, China's Cabinet, said over the weekend that it plans to grow its money supply by 17 percent in 2009 to boost the economy.
Policy direction has completely reversed course since the third quarter due to the impact of the global financial meltdown and cooling in domestic inflation. Earlier this year the central bank was still issuing treasury bills to drain excess liquidity from the system, but now the issuance of the three-year notes has been suspended while the one-year and three-month bills have been less used.
The outstanding value of yuan-denominated loans jumped 16.03 percent at the end of November from a year earlier.
Lenders extended 476.9 billion of new yuan loans last month, bringing the total to 4.14 trillion yuan for this year, already exceeding the whole-year target one month ahead of schedule.
The outstanding value of local-currency deposits rose 19.94 percent at the end of November from a year earlier. Household savings climbed 382.7 billion yuan from a month ago.
In November, China announced a 4-trillion-yuan stimulus package to be spent over the next two years.
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