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China's bank loan growth still in fast lane
Updated: 2004-05-14 13:48

China's central bank said Thursday that loan growth was still in the fast lane, amid repeated government calls to rein in credit and loans to cool down the economy.

According to a People's Bank of China report, the outstanding broad money, or M2, including money in circulation and all deposits, surged 19.1 percent year-on-year to 23.36 trillion yuan (US$2.8 trillion) by the end of April. The increase was almost equal to that of March.

The narrow money, or M1, including money in circulation and demand deposits of enterprises also jumped 20 percent.

The outstanding Renminbi loans of all financial institutions soared 19.9 percent in one year to 16.94 trillion yuan (US$2 trillion) by last month-end.

Over fears of over-investment in steel, aluminum and cement sectors possibly leading to inflation and an overheated economy, the central bank has been seeking to cut lending to those industries, largely by increasing bank reserve requirements three times in a row.

By the end of April, outstanding deposits rose 19.1 percent to 23.46 trillion yuan (US$2.8 trillion) and the hike was 2.3 percentage points lower from a year ago.

China has kept its exchange rate stable -- one US dollar for 8.2769 yuan at the end of last month.

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