Friday, April 28, 2017
News

China central bank says to tighten oversight of company debt, bank assets

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

BEIJING | Friday, Feb 17 2017 IST
 
China's central bank said today it plans to tighten up its oversight in a range of areas including corporate debt and bank assets, as policymakers fret over fast-rising leverage and the risk of asset bubbles in the rapidly growing economy.The People's Bank of China (PBOC) also said it will keep the yuan currency basically stable while maintaining a prudent and neutral monetary policy."We will increase monitoring of corporate debt risk, bank asset quality and liquidity, abnormal stock market fluctuations, use of insurance funds, property bubble risks...and cross-border capital flows," the central bank said in its fourth-quarter monetary policy implementation report.China has relied on rapidly increasing credit to fuel economic growth in recent years, but policymakers have begun to point to the threat of asset bubbles forming.Home prices rose rapidly in many Chinese cities last year, leading to new restrictions on purchases and lending in dozens of cities since October.The central bank said on Friday that China should restrict lending for property market speculation and build a long-term mechanism for the healthy development of the housing market.Top leaders in December vowed to focus on controlling financial risks this year, and the central bank has moved to a tightening bias in recent months, including raising the rate on the unofficial policy rate on Feb. 3.The PBOC on Friday also said it will increase two-way flexibility of the yuan while keeping the currency basically stable.China's yuan fell 6.5 percent last year against the dollar and is expected to weaken further this year, as policymakers respond with tighter restrictions on capital outflowsReuters CJ PR1951

-- (Reuters) -- C-1-1-DL0400-1155015.Xml

Watch News Videos

 
  LATEST COMMENTS (0)
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
TRENDING TOPICS
 
 
 
CITY NEWS
MORE CITIES
 
MORE ASIA NEWS
BIMSTEC seek cooperation in combating mo...
US drone strike kills 7 militants in Pak...
4 militants killed in police raid on hid...
SSB seizes antique idol being smuggled t...
Kulbhushan Jadhav's well-being a matter ...
ICC cuts BCCI revenues to half, still mo...
More...
 
INDIA WORLD ASIA
AAP will improve organisational structur...
SC raps Centre over implementation of Lo...
Pay fee or go to Tihar Jail: SC to Sahar...
Reach out on social, new media: Yogi tel...
Asiya Andrabi detained in Srinagar...
Modi launches UDAN from Shimla...
More...    
 
 Top Stories
'US to deport 7,000 Ghanaians'... 
Countries must intensify vaccinatio... 
Pankaj Oswal seeks transfer of shar... 
Kanhaiya, 29 other JNU students tol... 
Odisha launches Banayana project fo... 
Feels special to be released with '... 
IPL: Gujarat beat RCB by seven wick... 
NGT reserves judgment on plea to li... 
 
Weather in Delhi