China’s economy is likely to have expanded by over 10% last year, spurred by record bank lending and strong foreign inflows into the world's fastest-growing major economy.
China's GDP increased to 39.5 trillion yuan (US$5.98 trillion) in 2010, up 10.1% over the previous year, a leading international newswire agency reported, citing a story in the China Securities Journal.
Policymakers are expected to curtail bank lending in the new year in order to pre-empt any possible asset bubbles, especially in the real estate space, besides averting a proliferation of bad loans, according to reports.
Beijing has also set banks a full-year lending target of between 7.2 trillion yuan and 7.5 trillion yuan (US$1.09 trillion-1.14 trillion) in 2011, according to a separate story in the China Securities Journal.
The new lending-target range is smaller than the 7.95 trillion yuan that Chinese financial institutions lent in 2010, and well below the record 9.6 trillion yuan of loans extended in 2009.
The 2011 target compares with Beijing’s 2010 lending goal was 7.5 trillion yuan.
The report added that authorities have also set this month’s credit limit at 12% of the full-year target.
Yet another media report quoted chief economist for the National Bureau of Statistics, Yao Jingyuan as saying that China will be able to contain consumer price inflation (CPI) to around 4% in 2011.
Yao said China is likely to avoid severe inflation this year as it has ample foodgrain stockpiles after seven years of good harvests, and improved supply of industrial goods.
Yao apparently made the comments in the state-run Shanghai Securities Journal.