China limits bank lending

The Chinese government has told the biggest banks to increase reserves by 0.5 percentage points to 17.5% of their deposits. The order applies for four major banks and two smaller ones. In total they own 55% of all China's bank deposits. The reason is that China wants to control and cool down the inflation and housing prices, so that the recovery from the global crisis wouldn't be derailed and get off track. The total amount banks will be allowed to lend will be 7.5 trillion yuan which is lower than last year's 9.6 trillion yuan record.

Simon Rosseel

http://www.cnbc.com/id/39625003