Yesterday China's central bank published its August financial report, showing no signs of slowing credit growth.

Shen Minggao, a Citigroup economist, said although China's banking watchdog has come up with policies to control the credit of high-polluting and high energy-consuming enterprises, the government's direct influence over the credit growth of commercial banks is limited because most banks are listed on the stock market. A too rigorous policy control would affect their performance and therefore dampen investors' expectation.

The listing spree of commercial banks in recent years is also a factor contributing to excess liquidity, according to Shen.

For more details, please read the full story in Chinese (http://www.cs.com.cn/xwzx/02/200709/t20070913_1193219.htm).

(China.org.cn September 13, 2007)