Yesterday China's central bank published its August financial
report, showing no signs of slowing credit growth.
Shen Minggao, a Citigroup economist, said although China's
banking watchdog has come up with policies to control the credit of
high-polluting and high energy-consuming enterprises, the
government's direct influence over the credit growth of commercial
banks is limited because most banks are listed on the stock market.
A too rigorous policy control would affect their performance and
therefore dampen investors' expectation.
The listing spree of commercial banks in recent years is also a
factor contributing to excess liquidity, according to Shen.
For more details, please read the full story in Chinese (http://www.cs.com.cn/xwzx/02/200709/t20070913_1193219.htm).
(China.org.cn September 13, 2007)
