China Tightens Bank Credit Again / stocks up 2,17%

only up 2%....when the chinese officials really want to stop the excess they probably have to bundle 2 or 3 actions like a rate increase and the increase in the reserve requirements etc...

nur 2% im plus.....das bestätkt mich in meiner meinung das wenn die chinesischen offiziellen wirklich ernsthaft gegen den überschwang vorgehen wollen werden sie wohl zu ner kombinierten aktion von zinserhöhungen, erhöhung der reserveanforderungen etc greifen müssen.

The People’s Bank of China said on its Web site on Sunday that big banks would have to hold 11 percent of their deposits in reserve at the central bank beginning on May 15, up from 10.5 percent now.

The 0.5 percentage point increase, the fourth increase in reserve requirements this year and the seventh since June 2006, will tie up an estimated 170 billion yuan ($22 billion).

Over the last year, the central bank has also raised interest rates three times — most recently on March 17. Economists said the decision to raise required reserves made another increase in borrowing costs unlikely in the short term.

Over the last year, the central bank has also raised interest rates three times — most recently on March 17. Economists said the decision to raise required reserves made another increase in borrowing costs unlikely in the short term.

here is a nice rant from russ winter http://tinyurl.com/2jm2t2 !