Money Supply

The weight of paper

Quantitative easing by many central banks has stoked fears of inflation, but buying gold is not the only game in town. Photo: Bloomberg

The recent sharp drop in the gold price has taken many investors by surprise, setting off a scramble to understand why, and what lies ahead. The past years' series of crises and the onset of quantitative easing by the world's major central banks a few years ago invited new interest in gold.

Monday, 29 April, 2013, 3:59am 1 comment

Boost to China's money supply brightens outlook

Non-bank lenders are issuing loans hand over fist in China. Photo: Jonathan Wong

New loans extended by mainland banks and non-bank entities grew more than anticipated last month, suggesting there is ample liquidity available to support a recovery in the world's second-largest economy.

12 Apr 2013 - 5:58am

Chart of the Week: US credit growth

Signs of optimism

Faster bank credit, money supply growth and rising Treasury yields signal the United States economy is poised to pick up this year even amid the fiscal drag triggered by last month's budget deal, according to MKM Partners.

21 Jan 2013 - 3:57am

25pc rise in new loans beats market expectations

New-loan issuance on the mainland beat market expectations last month, rising 25 per cent to 586.8 billion yuan (HK$719 billion) - easing fears of a hard landing and indicating Beijing's strategy of selectively loosening monetary policy is starting to take effect.

12 Nov 2011 - 12:00am

New loans at near two-year low

Mainland banks last month extended the lowest number of new loans in almost two years as Beijing continued to tighten credit in a bid to rein in inflation.

New local currency loans amounted to 470 billion yuan (HK$571.56 billion), the lowest in 21 months, compared with 549 billion yuan advanced in August, the People's Bank of China (PBOC) said.

15 Oct 2011 - 12:00am

Money supply and forex shoot up

Growth of money supply on the mainland - or the total amount of cash in the economy - beat market expectations last month, and foreign exchange reserves ballooned to a record high.

Mainland banks extended 633.9 billion yuan (HK$762.21 billion) of loans last month - an increase of 14.9 per cent from May.

13 Jul 2011 - 12:00am

What goods will be most affected by rising inflation in China and Hong Kong? How will the consumer be affected? How should people manage this problem?

This week's question returns to the issue of inflation, which is holding sway over investments and costs of living. The question focuses on the impact of inflation on consumers.

4 Jul 2011 - 12:00am

Bond sale axed amid credit squeeze

China Development Bank cancelled a bond sale yesterday, a move possibly caused by Beijing's squeeze on liquidity and investors' reluctance to buy low-yield bonds when inflation is high.

17 Jun 2011 - 12:00am

Steady credit growth increases inflationary pressure

Mainland banks made fresh loans of 739.6 billion yuan (HK$884.54 billion) in April, up from 679.4 billion yuan in March, but 20.8 billion yuan lower than in the same month a year earlier, the People's Bank of China said yesterday.

The loans lifted total outstanding lending denominated in yuan to 50.21 trillion yuan at the end of April, up 17.5 per cent year-on-year.

12 May 2011 - 12:00am

Do not fear interest rate tool, says adviser

Too much money is moving around the mainland economy and Beijing should not fear raising interest rates, despite concerns about growing inflows of hot money, according to a top government adviser.

4 Apr 2008 - 12:00am

Think-tank sees growth at 10.5pc in first quarter

Disruptions from the worst snowstorms in 50 years and weaker export demand will slow economic growth on the mainland to 10.5 per cent in the first quarter, a government think-tank said yesterday.

29 Feb 2008 - 12:00am

Beijing curbs point to tighter funding

Central bank to impose stricter controls from next year as cooling measures fail

Beijing's pledge to tighten its monetary policy next year, which is a shift from its decade-long stance, suggests stricter control on liquidity and loan growth, economists and bankers say.

7 Dec 2007 - 12:00am

Mainland inflation stems from pork supply shortfall

For an immediate perspective on words like 'surging' and 'soaring' to describe the latest mainland inflation rate of 6.5 per cent, cast your mind back to 1994. This same inflation measure went as high as 28 per cent that year. It had also done it five years earlier.

13 Sep 2007 - 12:00am

Economists see little respite for consumers in coming months

Economists have warned that the impact of food-price increases on other sectors could continue pushing up inflation well into next year, despite government efforts to curb price rises.

Yiping Huang, chief China economist with Citigroup, said the consumer price index would rise further in coming months.

14 Aug 2007 - 12:00am

Cause of overheating lies closer to home

This week the government is set to announce more economic data for last month, which is likely to indicate a strong economy with no sign of slowing down despite a series of tightening measures.

13 Aug 2007 - 12:00am