Chinese bank lending surged by over US$1.35 trillion in 2009, according to Shaun Rein at Forbes. Much of that money went into stocks. And a lot of it went into Shanghai and Beijing real estate. Whether China bought itself a bubble is a very good question. One important point is that Chinese lending is based on savings…and isn’t borrowed (in U.S. fashion).
January 12th, 2010 | Dan Denning | 1 comment | ContinuedAll Posts Tagged With: "Chinese bank lending"
Chinese Government Expected to Sign Off on Second Stimulus Package
Chinese bank lending and credit growth is already through the roof. Last year’s $685 billion stimulus program sent fixed asset investment in China much higher. It was, by most accounts, hugely supportive of resource prices, and thus most welcome in Australian resource circles.
December 4th, 2009 | Dan Denning | 8 comments | Continued
Surge in Chinese Bank Lending in 2009 Leads to Fall in Bank Capital
And while we’re on the subject of China we should relay that Citic Pacific Ltd, which is an arm of China’s largest state-owned company, is set to spend more on magnetite iron ore projects in Australia. Magnetite is a lower grade ore than the hematite ores that BHP and Rio have all but locked up in the Pilbara.
November 26th, 2009 | Dan Denning | 2 comments | Continued
