China's economic growth maintains strong momentum: central bank

By Kim Young-gyo
HONG KONG, June 2 (Yonhap) -- China's economic growth momentum remains strong as the country rolls out new development strategies as well as measures to encourage domestic consumption, the central bank said Thursday.
In its 2011 China Regional Financial Operation report, the People's Bank of China (PBOC) said that the Chinese economy will continue to grow steadily as the government vows to promote domestic consumption and urbanization, while developing strategic emerging industries, such as eco-friendly and energy-efficient sectors.
The central bank, however, said China needs to transform its economic growth pattern and create sustainable economic growth.
"The regional financial authorities will continue to implement prudent monetary policies and manage the relationship between economic growth and inflation," the PBOC said in the report.
"They will strive to maintain a reasonable overall financing scale, maintain steady control over China's credit supply and increase innovation."
Concerns have recently mounted that the overheating Chinese economy is driving the country's worst inflationary pressures in addition to posing disparities in the distribution of economic assets at the same time.
In the first quarter of 2011, China's economy grew 9.7 percent, slightly down from the 9.8 percent expansion a year earlier. For full 2011, the economy is forecast to grow in the 9 percent range, compared to a 10.3 percent increase last year. Beijing is seeking to contain its economic growth to the 8 percent range.
The PBOC said regional financial institutions will work to improve financial support for the strategic emerging industries, while tightening credit for heavily polluting industries.
Under the regional development strategies, the financial authorities will implement differentiated credit policies to support housing consumption and promote the healthy development of the property market through measures such as constructing low-income homes, it said.
ygkim@yna.co.kr