Credit soars, economic stimulus package effective

Figures showed China's Renminbi loans in 2008 increased 4.91 trillion yuan in calculated terms, 1.28 trillion yuan more than a year earlier.

Credit distribution reached a record high in last December, with a rise of 771.8 yuan, due to the economic stimulus plan.

In terms of foreign trade, imports & exports amounted to US$2561.63 billion in 2008, up 17.8 percent year-on-year, but imports & exports saw the second consecutive negative growth in last December.

By the end of December 2008, loan balance of RMB and foreign currencies in financial institutions reached 32.01 trillion yuan, up 17.95 percent year-on-year in calculated terms, in which loan balance in RMB amounted to 30.35 trillion yuan, up 18.76 percent, 2.66 percent higher than last year, according to figures released by the central bank.

Growth in money supply also rose as more credit being granted.

By the end of last December, the balance of the broad measure money supply, M2, increased 17.82 percent year-on-year to 47.52 trillion yuan, while the balance of the narrow measure of money supply, M1 was up 9.06 percent to 16.62 trillion yuan from a year earlier, and the balance of cash in circulation, M0, was 3.42 trillion yuan, with an increase of 12.65 percent.

Accumulated net cash injection reached 384.4 billion yuan in 2008, 54.1 billion yuan more than last year.

In respect of deposits, the balance of deposits in RMB and foreign currencies in financial institutions reached 47.84 trillion yuan by the end of December 2008, up 19.30 percent.

The balance of RMB deposits reached 46.62 trillion yuan, up 19.73 percent.

RMB deposits in the whole year increased 7.69 trillion yuan, 2.3 trillion yuan more than last year