Unusual credit growth

A spurt of credit expansion in January can help boost confidence in an early recovery of the Chinese economy in the face of the global recession. But policymakers should not read too much into this massive jump in lending.

A close look at the structure of lending is urgently needed to grasp the reality of the national economy.

The People's Bank of China, the central bank, said on Thursday that Chinese banks extended a record 1.62 trillion yuan ($237 billion) in loans in January, more than double year-on-year.