Pressure for credit expansion remains high due to the fast growth of new loans in recent months as well as rising trade surplus and capital inflows, the Economic Information Daily reported Thursday, citing a statement issued by the People’s Bank of China (PBoC). Liquidity growth in the banking system has accelerated in recent months as capital inflows into China have increased thanks to the country’s trade surplus and the United States decision to delay tapering off its quantitative easing program, the central bank said. M2, a broad measure of money supply, rose 14.2 percent at the end of September, up 0.4 percentage points from the end of 2012, while new renminbi loans hit 7.28 trillion yuan (US$1.19 trillion) at the end of September, an increase of 557 billion yuan from the previous year, PBoC data showed. In the coming months, the central bank will use a variety of monetary tools to guide money supply and credit to grow at a reasonable and proper pace, it added.
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