Beijing’s efforts to boost growth by easing monetary policy are falling short as most cheap credit goes to inefficient state-run enterprises and local municipalities that use the funds largely to refinance old debt, The Wall Street Journal reported, citing manufacturing survey figures. An official manufacturing survey weighted toward bigger state enterprises and released this week edged higher in March, but a private manufacturing survey by HSBC Holdings including more smaller, export-oriented companies fell from February to a level suggesting contraction. Banks are sticking to lending primarily to state-owned enterprises, even at low rates, to secure them as long-term clients and because those firms have implicit or explicit government backing for debt repayment.
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