PBOC official says statistics don't give full picture of credit conditions
China's liquidity is ample, and simply easing monetary policy won't help cash-starved private companies, a central bank official told a symposium on Tuesday.
Wang Yi, deputy director of the statistics and analysis department at the People's Bank of China, challenged the conventional wisdom that tight monetary policy in China is driving up financing costs for the private sector.
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But Wang pointed to flaws in the official statistics, which he said underestimate actual money supply. He said "
If these two factors were added, the growth of M2 should be about 14 percent, instead of 12.1 percent. "Because of rapid innovation in financial products, many wealth management products, trusts and money market funds have moved beyond the scope of M2," he said. Similar comments were made last week by Pan Gongsheng, a deputy governor at the central bank. Pan said that the financial sector has introduced so many innovative products in recent years that it has become much more difficult to calculate money supply. Ample credit was also reflected in figures for new loans, according to Wang. New yuan loans in the first quarter reached 3.01 trillion yuan ($483 billion), up 259 billion yuan year-on-year.
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