China to cap 2008 lending at 3.6 tln yuan

China's central bank has set a target of capping new domestic-currency lending at 3.63 trillion yuan this year.

The China Securities Journal has reported this week, that the People's Bank of China will review banks' lending on a quarter-by-quarter basis to ensure they spread credit out over the year. Figures show, that banks extended new loans last month of 48.5 billion yuan, 172 billion yuan less than in December 2006.

Analysts attribute the slowing new loan issuance to the tighter monetary policy adopted by the central bank in November last year. It's believed that the PBOC will continue to take steps to ensure that a rebound will not occur in the first months of the new year.