bubbles

China to slow lending to curb asset bubbles

China will slow lending, in a move to curtail bubbles.

The Chinese authorities signaled Wednesday that bank lending would slow significantly this year and reportedly instructed some banks to curb loans — the latest in a series of moves designed to forestall inflation and stave off bubbles in the stock and property markets.

Liu Mingkang, chairman of the China Banking Regulatory Commission, said he expected Chinese banks to extend loans totaling about 7.5 trillion renminbi, or $1.1 trillion — down nearly 22 percent from the record 9.6 trillion renminbi lent last year.

China reports GDP Thursday and expect another blow out, estimates expect 10.8%.