China Accelerates Stimulus: 1 Trillion Yuan Lent in June 2012

[challenger123]

Hey Guys

The Chinese are accelerating their stimulus measures with bank lending set to almost double this month to a massive 1Trillion Yuan or $160Billion.
You would expect continued additional stimulus measures to be announced in the months ahead!

We need to remember that the ASX, especially the materials sector is currently significantly oversold.

It is back to post GFC March 2009 levels on the back of fear that China's economy will slow significantly in 2H 2012.

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I Hold: IndoChine Mining {ASX:IDC}


We are in the same position as March 2009 with significant recession priced into the ASX, yet multiple government and central bank stimulus measures have been announced.

The latest comes from China, where the People's Bank of China is on target to lend out a massive 1Trillion Yuan this month to help stimulate the CHinese economy from their current 8% GDP. Almost than double the average for the last 12 months.

As these funds are approved for infrastructure, housing, rail etc construction, expect to see the minerals prices to lift, and our miners' share prices.

As the Chinese PMI Index lifts above 50 in the next month, watch our market rebound quickly!

The goal now, as it was in March 2009 is to take advantage of the current situation, so we can reap the rewards in the second half of this year.
Cheers Challenger

New loans may reach 1t yuan in June
Updated: 2012-06-21 17:27
(chinadaily.com.cn)
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During the first 15 days of June, new bank loans from China's four State-owned banks amounted to 25 billion yuan, and analysts expect the number to reach 900 billion to 1 trillion yuan by the end of the month, China Securities Journal cited sources as saying on Thursday.

Insiders said that commercial banks' loans generally surge at the end of the month.

According to the report, at the beginning of June, the China Banking Regulatory Commission required commercial banks to increase credit supply, in particular their bank loan support of the construction of railways, highways, and other infrastructure facilities.

Data shows that 682 billion yuan in new bank loans were issued in April and the number rapidly increased to 793.2 billion yuan in May.

The demand for credit from an increasing number of major projects awaiting approval will lead to a gradual release of loans in June and July, and the growth of the credit is expected to slowly rebound, industry sources said.

 

[numbercruncher]

Might make upfor a little of the slack from this export driven economy nose diving as a consequence of world wide woes ?

But to think that China has decoupled into some huge driver of world economic growth is a pipe dream in my humble opinion ...

HONG KONG - As the Chinese economy continues to sputter, prominent corporate executives in China and Western economists say there is evidence that local and provincial officials are falsifying economic statistics to disguise the true depth of the troubles.

Record-setting mountains of excess coal have accumulated at the country's biggest storage areas because power plants are burning less coal in the face of tumbling electricity demand. But local and provincial government officials have forced plant managers not to report to Beijing the full extent of the slowdown, power sector executives said.

Electricity production and consumption have been considered a telltale sign of a wide variety of economic activity. They are widely viewed by foreign investors and even some Chinese officials as the gold standard for measuring what is really happening in the country's economy, because the gathering and reporting of data in China is not considered as reliable as it is in many countries.

http://www.heraldtribune.com/article/20120623/ARTICLE/120629837