China sees “prudent” lending, tight for ponzi sectors

Friday 6 June 2014

Headlines via Forexlive:

China Banking Regulatory Commission statement released ahead of a briefing in Beijing (due at 0200 GMT)

Says the government will maintain its official “prudent” monetary policy stance

Credit and total social finance growth will be kept at a “reasonable” pace

Various monetary policy tools, including open market operations and the reserve requirement ratio, will be used to strengthen liquidity regulation and maintain overall market stability

Repeated that lending will be controlled for sectors in overcapacity and local government finance vehicles

Overcapacity means developers, steel. Miners really struggling today now.

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.