China may be succeeding in its attempt to cool its overheating economy, government analysts said after the release of key economic figures.
Financial institutions extended RMB 61.6 billion in new loans in October, a decline of 14.6 percent from the same month a year earlier, and the first year-on-year monthly drop this year.
This year saw rapid economic expansion in China accompanied by concerns that the growth, particularly in real estate, automobiles and certain metals, is spinning out of control.
The government responded by introducing measures to try to make it harder for expansion-eager companies to raise money for new investments, including raising the amount of money commercial banks need on hand to 7 percent from 6 percent of total deposits
As tighter credit conditions take effect industrial output growth is expected to decline from the 17.2 percent growth seen in October.