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China central bank says supporting 'reasonable' growth in credit, social financing

Published 25/06/2014, 02:20
China central bank says supporting 'reasonable' growth in credit, social financing

SHANGHAI (Reuters) - China's central bank has said it will maintain "reasonable" growth in credit and social financing and improve credit structures to prevent systematic and regional financial risks.

The People's Bank of China also said in a report published late on Tuesday that China's regional economies were expected to remain stable.

Data out earlier this month showed new bank lending and money supply rose faster than expected in May, adding to indications the economy is pulling out of its soft patch - although the recovery does appear patchy.

Broad M2 money supply rose 13.4 percent in May from a year earlier, quickening from 13.2 percent rise in April, while aggregate total social financing, a broad measure of liquidity in the economy, was 1.4 trillion yuan in May versus 1.55 trillion yuan the month before.

© Reuters. A Chinese national flag flutters outside the headquarters of the People's Bank of China in Beijing

The PBOC report on the performance of China's regional economies said attention to potential risks in the financial sector was needed.

The central bank blamed some low-efficiency industries and companies with for "crowding out" funding for small firms, pledging to improve liquidity and risk management.

(Reporting by Kazunori Takada; Editing by Paul Tait and Eric Meijer)

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