(Source: By Bloomberg News) – Chinese companies are borrowing record amounts from Hong Kong’s banks as the central government tries to bring the inflation rate down from a three-year high by reducing access to credit.
Financial institutions’ claims on mainland companies rose four-fold to 1.6 trillion yuan ($250 billion) between mid-2009 and the end of May, Hong Kong Monetary Authority data show. They will provide another 700 billion yuan to 1 trillion yuan of loans to mainland firms in the second half of 2011, according to Fitch Ratings. The money isn’t included in the central bank’s estimate of total lending in the economy. China’s loans fell to their lowest level in a year in July.
Source: By Bloomberg News
Aug 18, 2011 9:22 PM PT
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