New Loans Expect Drop to 600 Billion Yuan in Feb.

According to the latest research report from Nomura Securities, China's new loans in Feb. 2010 are expected to drop to RMB 600 billion, with the CPI up 2.1%. CITIC Securities expressed a similar opinion.

For the impact of China's traditional Spring Festival, new loans in February would always drop a lot from a historical point of view. On the other hand, the deposit-reserve ratio has been raised twice by the central bank, which was taken as a signal of credit tightening.

According to the 2010 Government Work Report, China will continue the implementation of the pro-active fiscal policy and the moderately loose monetary policy, with new loans expected to achieve 7500 billion Yuan in 2010.