China’s latest moves to peace spending
By Daniel at 11 January, 2009, 9:47 pm
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
(1) China to announce new investments, pace spending plan:report
HONG KONG (MarketWatch) — Chinese Premier Wen Jiabao said the government was likely to announce new measures including large-scale investments to fight the crisis by early March, the South China Morning Post reported Monday. He said China will also accelerate its planned spending of 600 billion yuan ($87.6 billion) on science and technology to help the country weather the economic downturn. Furthermore, the Chinese economy performed “better than expected” in December and was likely to be the first in the world to rebound from the global financial, Wen added, according to the report.
(2)China allows small-, mid-sized banks larger lending room to support economy
BEIJING, Jan. 10 (Xinhua) — China’s small- and mid-sized commercial banks will be allowed bigger room in lending, the country’s banking regulator said here Saturday in its latest effort to ease credit for the slowed economy.
The loan-deposit ratio of small- and mid-sized lenders can exceed the required level “by a proper margin”, said the China Banking Regulatory Commission (CBRC) in a statement on its website.
The CBRC prohibits Chinese commercial banks from lending out more than 75 percent of their total deposit to avoid liquidity crises. Saturday’s statement didn’t reveal whether the ceiling will be moved up for large lenders too.
The move to ease the limit is part of the measures the CBRC announced on Saturday to give stronger credit support to the economy impacted by the global financial turmoil.
(3)China lowers threshold for bond market entry
BEIJING, Jan. 10 (Xinhua) — Experts saw the first announcement from the People’s Bank of China (PBOC) in 2009 as the latest move to ease difficulties domestic companies encounter while trying to raise capital.
Companies now can issue bonds below 500 million yuan (73 million U.S. dollars) in the country’s inter-bank bond market. The central bank lowered the threshold for market entry, which was setup in 2004, in an on-line statement Friday.
“The abolishment will make it easier for small and medium-sized companies (SMEs) to raise capital. It also reflects the PBOC’s decision to help these companies,” a bond trader, who declined to be named, told Xinhua Saturday.
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
No comments yet.