China Moves to Curb Lending for Second Time in Five Weeks – David Lague
From the New York Times:
China’s central bank on Friday moved to curb excessive lending for the second time in five weeks, in a bid to cool a surging economy.
The People’s Bank of China ordered commercial banks to increase the amount of funds they hold in reserve to tighten the credit available for investment in booming sectors, including property and infrastructure.
The renewed effort to control lending had been widely expected after official figures released Tuesday showed that the Chinese economy grew at 11.3 percent in the second quarter. It was the fastest pace of growth in more than a decade. [Full Text]
See also MarketWatch’s “China central bank moves to cool credit growth“: Economists say reserve ratio moves won’t impact yuan policy; and China Daily’s “China moves to cool credit growth” and CDT’s coverage of overheated economy