Economic planners worry that the export-fueled flood of cash surging through China's economy is driving dangerously fast investment in stocks, real estate and other assets.
The money-supply surge strains the central bank's ability to contain pressure for prices to rise. The bank, China's equivalent of the U.S. Federal Reserve, drains billions of dollars a month from the economy through bond sales, piling up reserves that have topped $1.3 trillion. Still, deposits at Chinese commercial banks top $4 trillion, and are growing by tens of billions of dollars a month, leaving plenty of money for new lending.
Friday, August 3, 2007
China Properties News
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