China's central bank has told the heads of the largest state-controlled banks to slow the pace of new lending, say people familiar with the matter, after new loan volume in the first half of the year tripled from same period a year earlier.
The pressure from the People's Bank of China signals an unstated shift in policy and comes as it steps up its open-market operations to control liquidity and slow loan growth.
Over the past two weeks, China's leaders have emphasised the country will adhere for now to its policy of “moderately loose” monetary conditions.
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