China’s credit en­gine may add 23tril yuan

New Straits Times - - Business World -

China’s credit en­gine will keep hum­ming this year, adding the rough equiv­a­lent of Ger­many’s an­nual eco­nomic out­put to its al­ready mas­sive stock of to­tal so­cial fi­nanc­ing (TSF), ac­cord­ing to es­ti­mates de­rived from the na­tion’s tar­gets for this year.

Adding higher eq­uity mar­ket fi­nanc­ing and about five tril­lion yuan (RM3.22 bil­lion) worth of lo­cal gov­ern­ment bond swaps to the of­fi­cial credit growth tar­get of 12 per cent, an­a­lysts at UBS Group AG see TSF ex­pan­sion of 14.8 per cent this year.

They cal­cu­late that’s equal to a 23 tril­lion yuan ad­di­tion to the amount of to­tal credit al­ready cir­cu­lat­ing in China.

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