| NEWS ARCHIVES |
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| Chinese exports power ahead as drop in bank loans came in better-than-expected |
| 10 Mar 2010 |
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China’s trade surplus shrank to the lowest level in a year in February on the back of a surge in imports.
Data out today shows imports rose by a more-than-estimated 44.7 percent from a year ago, while exports gained 45.7 percent
The trade surplus came in at 7.6 billion US dollars.
The export gain in February was more than the 38.3 percent median estimate.
Imports, meanwhile, topped a 38 percent estimate that analysts had predicted.
The trade surplus was in line with forecasts.
Seasonal factors affected the January and February figures because of a shift in the Lunar New Year holiday to February this year from January in 2009.
China, the world’s biggest exporter, is monitoring global demand as the government considers ending crisis stimulus polices.
Meanwhile...
Chinese banks extended about 700 billion yuan or some 102.5 billion US dollars of new loans in February, half the amount made in January.
The figure reported by state media, the China Securities Journal, is down from the 1.39 trillion yuan lent out the month before and is in line with forecasts.
Economists had expected new lending for February to fall to 675 billion yuan
The slowdown came on the heels of orders by authorities for banks to rein in lending.
It was also due in part to the week-long Lunar New Year holiday, which fell in mid-February.
The market is closely watching the loan data to judge how serious Beijing will be in controlling the jump in lending seen at the start of the year.
The relatively moderate figure could ease concerns over further rises in banks' required reserves, which have hurt stock prices in past months.
Last week, Chinese Premier Wen Jiabao confirmed a 2010 loan target of 7.5 trillion yuan, down from 9.6 trillion in 2009.
Beijing has repeatedly ordered banks to lend at a steady rhythm throughout the year to avoid bunching.
They also want banks to recall loans that are being inappropriately used -- for example to invest in stocks or property. |