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The People's Bank of China has released its 3rd quarter monetary policy report.
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The report also showed that by the end of August, total outstanding loans for SMEs hit 11 trillion yuan, accounting for more than 53 percent of total corporate lendings, or nearly 39 percent of the country's total outstanding loans.
The Chinese central bank warned that the impact of the global financial instability is expanding in developing nations. And the slowing external demand, as well as the fluctuation in exchange rates and capital flows, could further hurt those economies with smaller forex reserves and trade surpluses.
It said the risks of a downturn in the Chinese economy are on the rise and will require steps to ensure adequate liquidity in the market. The central bank said it will use its open market operations in such a way as to increase liquidity as part of efforts to maintain sufficient cash in the banking system. It will also ensure adequate credit is available in the economy.
(CCTV November 19, 2008)
