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reportedly attributable to the improvement in the economic environment for foreign investment. This might be partly related to the Coastal Region Economic Development Strategy advocated by General Secretary Zhao Ziyang early this year.
More recently, Chinese leaders have repeatedly emphasized that China's efforts at restoring control of
the economic environment and re-establishing economic order will not affect China's economic cooperation (mainly trade and investment) with foreign enterprises
(14)
15.
(e) Financial developments in China
·
The financial sector in China was characterized
by two main developments in recent months. First, in an attempt to contain inflation, the Chinese monetary authorities have devoted efforts to curbing the runaway growth of loans and money supply (currency in circulation). Second, transactions in the foreign exchange adjustment centres have been further liberalized.
16.
(i) Curbing excessive growth in loans
The People's Bank of China (PBOC) has repeatedly emphasized the need to curb excessive growth in loans. The following are some of the measures announced recently :
All short-term loans extended by PBOC to various trust and investment companies and to credit co-operatives had to be recalled by the end of September.
(14) But there had been reports suggesting projects
involving foreign interests, particularly those "non-productive" ones like hotels, had also been adversely affected by the recent campaign to re-establish economic order.
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