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China First-World Quandary Exposed as $800 Billion Lending Freed

From bloomberg.com

China’s central bank is joining the balancing act of developed-world counterparts as it moves to free up at least $800 billion in funds for lenders, seeking to support growth without further inflaming financial risk. The world’s largest emerging market will broaden the definition of a deposit in 2015, boosting the lending capacity of Chinese banks that have to cap loans at 75 percent of funds held. The relaxation, reported by the official Xinhua News Agency yesterday, could make an additional 5 trillion yuan ($800 billion) to 5.5 trillion yuan available, according to analysts at Credit Agricole CIB and Guotai Junan ... (full story)

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