China's CPI rises 4.5% in November

09:43, December 10, 2019

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  Monetary policy to stabilize growth amid rising CPI

  Consumers buy vegetables at a supermarket in Handan, Hebei province. [Photo by Hao Qunying For China Daily]Chinas rising consumer inflation, driven by higher food prices, will not obstruct the monetary authoritys efforts to counter economic sluggishness, as companies still need credit and adaptive liquidity to sustain investment, analysts said.Economists predicted that the consumer price index, the main gauge of inflation, will drop gradually next year after peaking in January as the government takes measures to tame the high price of pork through increased supply. Thus, monetary policy will focus on stabilizing growth and preventing a cre­dit crunch.Banks in China issued yuan-denominated new loans of 1.39 trillion yuan ($197.5 billion) in November, an increase of 138.7 billion yuan from a year earlier, the Peoples Bank of China, the central bank, said on Tuesday.The faster-than-expected growth of bank lending was mainly due to the accelerated expansion of corporate and long-term household debt, said Li Chao, chief economist at Huatai Securities. "It indicated strong credit demand from companies and individuals, and the central bank is keen on expanding credit to support growth."Total social financing, a broader measure of credit to the real economy that also includes financing through non-banking institutions and local government special bonds, rose by 1.75 trillion yuan last month. The amount reached 221.28 trillion yuan by the end of November, up 10.7 percent from a year earlier, the central bank said.Li expected the year-on-year growth rate of total social financing will hit a peak of 11.5 percent in the first quarter of 2020, and the central bank is likely to further cut the reserve requirement ratio to maintain sufficient liquidity in the financial system.So far this year, China has maintained a relatively cautious monetary policy, even as most major central banks returned to unconventional monetary policies featuring subzero interest ...

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  China's new yuan loans rise in November

  File photo: CGTNBEIJING, Dec. 10 (Xinhua) -- Chinas new yuan-denominated loans hit 1.39 trillion yuan (197.44 billion U.S. dollars) in November, a year-on-year rise of 138.7 billion yuan, central bank data showed on Tuesday.The M2, a broad measure of money supply that covers cash in circulation and all deposits, rose 8.2 percent year on year to 196.14 trillion yuan at the end of November.The M2 growth was 0.2 percentage points lower than that at the end of October but was 0.2 percentage points higher than the same period last year.The narrow measure of the money supply (M1), which covers cash in circulation plus demand deposits, rose 3.5 percent year on year to 56.25 trillion yuan by the end of November.The M1 growth was 0.2 percentage points higher than that at the end of October. It was also 2 percentage points higher than the same period last year.M0, the amount of cash in circulation, rose 4.8 percent year on year to 7.4 trillion yuan by the end of November.The central bank injected 57.8 billion yuan of net cash into the market in November.Newly added social financing, a measurement of funds that individuals and non-financial firms receive from the financial system, stood at 1.75 trillion yuan in November, up 150.5 billion yuan from the same period last year.In the January-November period, total new social financing reached 21.23 trillion yuan, an increase of 3.43 trillion yuan from the same period last year.

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  China's heavy truck sales continue to rise in November

  The 7 millionth Jiefang truck, a white Jiefang J7 truck, rolled off the assembly line in Changchun on Nov 30, 2018. (File photo: Xinhua)BEIJING, Dec. 8 (Xinhua) -- Chinas heavy truck sales rose for the fifth consecutive month in November, data from an auto industry information service provider showed.Around 94,000 heavy-duty trucks were sold last month in China, up 3 percent month on month, according to a report from cvworld.cn.The figure rose 5.3 percent on a yearly basis, said the report.FAW Jiefang Automotive Co., Ltd., a truck subsidiary of Changchun-headquartered FAW Group, continued to take the lead by selling 17,500 units last month.Analysis from cvworld.cn said that intensified restrictions on older trucks and greater efforts of overload control contributed to new purchases in the heavy-duty truck market.In the first 11 months, sales of heavy trucks totaled 1.07 million units, increasing 1 percent year on year.The annual sales of heavy-duty truck in 2019 are expected to hit the record by exceeding 1.15 million units.