CHINA / National

    Cooling measures take hold; economy slows down
    (Bloomberg.com)
    Updated: 2006-07-24 10:30

    China's economic growth, which reached the fastest pace in a decade in the second quarter, may slow as the government takes steps to clamp down on lending.

    The economy will grow 10.4 percent this year, according to the median forecast of 26 economists surveyed by Bloomberg News last week, as growth in the last half of the year slows from 11.3 percent in the second quarter and 10.9 percent in the first half.

    "Economic growth is likely to ease in the second half of 2006, reflecting the combined impact of earlier tightening measures as well as anticipated further moves to cool the economy," said Frank Gong, chief economist for Greater China at JPMorgan Chase & Co. in Hong Kong.

    The government on July 21 restricted funds available for lending for the second time in two months to cool an investment boom the World Bank says increases the risk of an economic slump. The People's Bank of China will probably also raise interest rates for a second time this year to further curb spending, economists say.

    The increase in the amount of deposits banks need to hold as reserves -- by 0.5 percentage point to 8.5 percent -- "is a monetary tightening measure and the impact will be felt by all sectors," said Wang Qing, head of economics and strategy for Greater China at Bank of America Corp. in Hong Kong.

    Chinese stocks will probably extend declines made in the US after the reserve restriction was announced in Beijing late Friday. Aluminum Corp. of China sank 2.1 percent in US trading. Brilliance China Automotive Holdings Ltd. declined 1.4 percent to $15.24. Copper for delivery in three months fell 4.4 percent on the London Metal Exchange. The metal, of which China is the world's biggest consumer, is down 20 percent from a record $8,800 on May 11.

    Reforms

    China's economy has grown 10-fold since Deng Xiaoping began free-market reforms in 1978, overtaking the UK as the world's fourth-biggest in 2005. Growth has been powered by exports, which increased to 38 percent of gross domestic product in 2005 from 23 percent in 2000, according to Robert Subbaraman, senior economist at Lehman Brothers Asia Ltd. in Hong Kong.

    Exports helped triple the trade surplus to $102 billion last year and $61.5 billion in the first half of 2006. China's foreign- exchange reserves, the world's largest, jumped 32 percent from a year earlier to $941 billion at the end of June.

    China has cracked down on lending at least four times since 1990 to cool bouts of overheating.

    Page: 12

     
     

    Related Stories
     
    av区无码字幕中文色| 91精品国产综合久久四虎久久无码一级| 暴力强奷在线播放无码| 亚洲成?Ⅴ人在线观看无码| 亚洲va无码va在线va天堂| 亚洲中文久久精品无码ww16| 亚洲动漫精品无码av天堂| 久久久这里有精品中文字幕| 亚洲无码高清在线观看| 无码人妻精品一区二区三18禁| 日韩高清在线中文字带字幕| 狠狠精品干练久久久无码中文字幕| 亚洲精品无码午夜福利中文字幕| 狠狠精品久久久无码中文字幕| 少妇无码太爽了不卡视频在线看| 日韩午夜福利无码专区a| 中文无码不卡的岛国片| 熟妇女人妻丰满少妇中文字幕| 中文字幕无码精品亚洲资源网久久| 精品成在人线AV无码免费看| 亚洲成AV人片在线观看无码| 久久亚洲精品无码VA大香大香| 最近中文字幕mv免费高清在线| 伊人久久大香线蕉无码麻豆 | 亚洲AV区无码字幕中文色| 午夜无码一区二区三区在线观看 | 亚洲AV永久无码天堂影院| 国产精品va无码一区二区| 久久久久亚洲精品无码蜜桃| 亚洲AV无码精品色午夜果冻不卡| 无码人妻一区二区三区一 | 蜜桃臀AV高潮无码| 亚洲乱码无码永久不卡在线| 一本一道AV无码中文字幕| 在线精品无码字幕无码AV| 无码人妻精品一区二区三区久久久| 野花在线无码视频在线播放| 伊人久久无码中文字幕 | 亚洲av无码专区在线观看素人| 精品久久久久久无码人妻热| 无码人妻一区二区三区免费视频 |