Regulation brings hidden credit back into limelight

Move sees surge in country's new loans in Jan to 2.9 trillion yuan

China's tightening regulations on bank lending have put more hidden credit back on balance sheets, as the authorities strive to readjust the method of calculating the major money supply indicator to better supervise financial expansion.

The country's yuan-denominated new loans surged to a record high of 2.9 trillion yuan ($460 billion) in January compared with 584.4 billion yuan in December, according to data released by the People's Bank of China on Monday. It was 867 billion yuan more than the same period a year earlier.