Chinese Lending Up in March, Watch Yuan Funds as Bellwether to Its Economy
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By Tim Seymour
Even as Beijing works to tighten the money supply, Chinese banks are still lending at a robust pace and feeding inflationary forces.
Last night’s new loan numbers can be considered a preview of tonight’s inflation data – the main event for those watching to see whether the Chinese economy will overheat on a combination of fast growth and high oil prices.
It turns out that Chinese lenders handed out another $104 billion in cash last month, a full 27% more than the amount of lending completed in February.
This came despite higher interest rates and what seems to be a long cycle of higher reserve requirements designed to tie up more money and prevent banks from loaning it out.
Chinese money supply has swelled 16% over the last year and with foreign currency Complete Story »
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