China to Control Credit Growth

Bank Of China Ltd. has ordered its credit officials to halt any new yuan loans due to overly fast lending growth so far in January, a person familiar with the situation said Wednesday. The headquarters of the state-controlled lender has issued a notice to all of its branches to stop issuing new yuan loans and also curb foreign-currency denominated new loans, said the person, adding that the bank didn't say in the notice when new yuan loans will resume.

In a statement, Bank of China said its new loans in the first 20 days of January has been high and that it will take a closer look at its lending, though it didn't say whether it had suspended lending.

Banking shares in Shanghai and Hong Kong fell on renewed concerns over lending supply after a Chinese media report that the China Banking Regulatory Commission has asked several commercial banks to stop issuing new loans in the remaining days of January.

CBRC Chairman Liu Mingkang said Wednesday that the regulator sees a substantial drop in new yuan lending after last year's explosive growth, but said the CBRC hasn't specifically told banks to suspend lending in January.

"I've made it very clear about bank lending. We have never asked the banks to stop lending," Mr. Liu said on the sidelines of a conference in Hong Kong.
WSJ