Home Business Politics Life Culture��Edu Sci��Tech Sports Photos
��Search
China Observer
�� Chinese robust economy contributes greatly to world economic growth
�� Aging society to cost Chinese dearly
Photos
�� "Colorful Guizhou" fashion show wraps up
�� Quintuplets lions born in Anhui
�� Human Chinese chess battle in Shandong
Coconut Oil, Flash Mp3 Player , Fruit , Electric Scooter, Leather Sofa,
Swimwear, Beverage Dispenser, Kitchen Furniture, GSM Phone, Juice
Concentrate, Tractor Fertilizer, Car Engine , Electric Atv, Automotive
Switch , Display Showcase, Zinc Sulphate, Access Point, Network Card,
Laptop, Recovery Card, Aluminium Profile, Granite Countertop, Wind
Generator, Power Strip, Milk Powder, Ice Cream, Sweet Corn, Ketchup,
Yellow Tea, Instant Noodle, Frozen Seafood, Apple Juice, Nescafe,
Beverage Container, Baby Food, Digital Photo Frame, Silk Flower, Bamboo
Handicraft, Christmas Tree, Badge, Candle.
��Home>>Business
Zhou concerned about stock bubbles
www.chinanews.cn 2007-05-08 09:34:38
(Source: China Daily)
May 8 - There is still room to raise reserve requirements for banks after
previous hikes failed to slow lending and inflation, the central bank
governor has said.
Zhou Xiaochuan also said inflation is manageable but acknowledged he was
concerned about bubbles building in the stock market.
China has tried to rein in excess liquidity in the financial market by
raising the reserve requirement ratio, selling central bank bills and
raising interest rates over the past year.
But there is surely scope to raise the reserve requirement ratio the
amount of money banks must hold with the central bank Zhou told reporters
on Sunday on his way to Frankfurt for a meeting of the Bank for
International Settlements in Basel, Switzerland.
The People's Bank of China raised the reserve ratio on April 29 to 11
percent from 10.5 percent the seventh time since last July which will
take effect on May 15. The central bank has also raised interest rates
thrice since last April.
Economists forecast the central bank may take further steps to soak up
liquidity in the coming months, pushing the ratio to 12 percent or even
higher.
They largely base their outlook on China's soaring economy, which has
shown few signs of slowing down.
In the first quarter, the gross domestic product grew by 11.1 percent
from 10.4 percent in the previous quarter. Inflation reached 3.3 percent
in March, the highest in more than two years which breached the warning
signal of 3 percent set by the central bank.
Meanwhile, banks extended 1.4 trillion yuan ($181.4 billion) of new loans
in the first quarter, nearly half the total of last year.
Gao Shanwen, chief economist with Anxin Securities, however, said the
inflationary pressure is not too grim. The indices of consumer prices,
producer prices and investment, are all within acceptable range, he said
after the central bank announced higher bank reserve requirements rather
than the widely anticipated interest rate hike.
Some economists hold the adjustment in the reserve requirements will lose
its effectiveness in taming liquidity as the market has become used to
it; and advocated raising the interest rate.
Shen Minggao, an economist with the Citigroup in Beijing, said the hike
in the reserve ratio increased the possibility of an interest rate hike
in the second quarter.
On inflation, Zhou said the recent acceleration was "normal," according
to Bloomberg. "We can't say there is no inflationary pressure, but it was
not very unexpected."
There is "no evidence that inflation will go out of control," Zhou told
reporters in Basel.
��Stock market will remain bullish in 2007, but with greater risks
��How far can Chinese stock market go?
��Shanghai stock index breaks through 3500
��Stock market fever better than real estate fever, expert
��World stock exchanges go hunting in China
Photos More
Gift exhibition
Water carnival
Group wedding
"Human domino"
Copyright� 2004 Chinanews.com. All rights reserved.
Reproduction in whole or in part without permission is prohibited.
Disclaimer: viewpoints in the website do not represent China News Service
Learn Chinese, Chinese language, Learning Materials, Mandarin audio lessons, Chinese writing lessons, Chinese vocabulary lists, About chinese characters, News in Chinese, Go to China, Travel to China, Study in China, Teach in China, Dictionaries, Learn Chinese Painting, Your name in Chinese, Chinese calligraphy, Chinese songs, Chinese proverbs, Chinese poetry, Chinese tattoo, Beijing 2008 Olympics, Mandarin Phrasebook, Chinese editor, Pinyin editor, China Travel, Travel to Beijing, Travel to Tibet
No comments:
Post a Comment