GF 323

CONFIDENTIAL

5

機密

The

bank loans had been consistently high after 1989, while the

growth rate of the money supply had accelerated markedly (6).

government's attitude during 1992 was generally for a loose credit policy in pursuit of rapid capital construction and generally a high economic growth.

10.

On the supply side, China's gross industrial output grew substantially by 21.7% in real terms in 1992,

which was largely in line with the increase in the main

demand components taken together. While there was thus no

significant imbalance at the overall level, it was the

bottleneck sectors like energy and certain key raw

materials that showed the greatest problems. Over the past

few years, outputs by these sectors had generally grown at

the overall industrial

a much slower

rate

than

(6) Indicators of money and credit:

Year-on-year rate of increase

Currency in circulation

Domestic

deposits

Bank loans

(%)

(*)

(응)

1986

23.3

25.9

28.5

1987

19.4

22.1

19.0

1988

46.7

13.0

16.8

1989

9.8

21.4

17.6

1990

12.8

29.2

22.2

1991

20.2

27.6

19.0

1992 (estimate)

30.0

N.A.

20.0

CONFIDENTIAL #

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