Tags: China | recovery

China Official Sees V-Shaped Recovery

Tuesday, 08 Dec 2009 09:48 AM

China is experiencing a clear V-shaped economic recovery, Zhu Min, vice-governor of the People's Bank of China, was cited as saying on Tuesday.

Zhu's comment on the solidity of growth in the world's third-largest economy comes a day after the central leadership said it would stick to pro-growth policies implemented more than a year ago to counter the shock of the global financial crisis, while leaving open the possibility of tightening down the road.

"China's economy has started stabilising and showed a clear V-shaped recovery," the official Xinhua news agency paraphrased Zhu as saying in a speech.

"The relatively loose monetary policy adopted by China to address the global financial crisis has produced good results."

He added that the economy was well on track to meeting or exceeding the government's target of 8 percent growth this year.

Annual growth picked up to 8.9 percent in the third quarter from 6.1 percent in the first three months, turning the focus of attention to when and how policymakers will unwind stimulus that has included encouraging a flood of lending in the first half of the year.

The central bank said earlier on Tuesday it would maintain an "appropriately loose monetary policy", echoing virtually word-for-word the statement issued at the conclusion of the Central Economic Work Conference a day earlier.

But analysts took other commitments from that conference, including a vow to "strictly" control new investment projects and to enhance policy flexibility, to suggest that the overall policy outlook next year will be much less accommodative than it was this year.

The banking regulator followed up on Tuesday with its own list of plans for implementing the work conference's aims, effectively echoing the announcement from the day before, which called for more controlled growth in credit.

The China Banking Regulatory Commission (CBRC) said on its website that it would guide banks to maintain consistency in their extension of credit, focusing on improving the quality of their loan books.

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China is experiencing a clear V-shaped economic recovery, Zhu Min, vice-governor of the People's Bank of China, was cited as saying on Tuesday.Zhu's comment on the solidity of growth in the world's third-largest economy comes a day after the central leadership said it would...
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2009-48-08
 

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