'Reasonable' credit growth key to rebound

Great hopes are placed on a "reasonable" expansion of credit to foster a rebound in China's economy in the fourth quarter, along with timely adjustments of the interest rate level and property policy, economists suggested after quarterly GDP growth slowed to 6 percent.

A broader range of credit, which also includes bonds issued by the central government and budgeted borrowing by local governments, should be boosted to drive up domestic demand, according to a research report issued on Tuesday by the China Finance 40 Forum, a finance think tank.

The research attributed the third quarter's economic slowdown to depressed credit growth, as the purchasing power of the government and the housing sector has been weakened due to a deceleration of borrowing, it said.