By Hu Xiaocen | 2013-1-17 | ONLINE EDITION
CHINA'S new lending this year may amount to 9 trillion yuan (US$1.4 trillion) amid a slightly slower growth of social financing aggregate compared to last year, economist said yesterday.
New bank loans in yuan was 8.2 trillion yuan in 2012, while total social financing rose 2.9 trillion yuan to 15.8 trillion yuan from a year earlier on surging corporate bond sales and trust loans, the central bank said last week.
"Moderate monetary easing (this year) shall supply ample liquidity for a mild economic recovery, "Qu Hongbin, chief economist for China at HSBC, said at a press conference in Shanghai yesterday. "It's necessary to take preventive measures to oversee the risk exposure of (banks') off-balance activities, but the introduced policies will be in line with the main objective, that is to maintain loose monetary conditions."
China's banking regulator said earlier this week that selling unauthorized financial products to attract deposits and misleading customers are strictly prohibited. It has ordered commercial banks to do internal checks to prevent non-permitted sales.
Beijing-based Hua Xia Bank blamed an employee last month for selling unauthorized wealth management products that failed to repay investors, which caused a stir in the market the burgeoning issuance of similar products may add risk to the whole financial system.
"People usually refer to the wealth management products as 'shadow banking'. I think they share some similarities, but are not exactly the same. Strengthened supervision should be put in place. But worried about a time bomb here is over much," said Qu.