Bank lending rose 19% in December 2008, a sign that interest rate cuts and looser credit regulations are having an effect, the Wall Street Journal reported. Analysts said the rise is positive for the Chinese economy because it is helping to offset December’s drop in imports and exports, but some concern remains over how long high lending rates can be sustained. Most of the lending appears to be directed at infrastructure projects and state-owned enterprises, not small and medium-sized enterprises. UBS has predicted that bank lending in China will rise 16% in 2009.