In 2006, the outlook of the Chinese economy is good and the forecast goals are expected to materialize, i.e. a GDP growth of 8 percent and a CPI increase of around 3 percent. In 2005, the monetary and financial conditions maintained a good momentum of smooth performance in line with economic growth.
M2 grew by 17.6 percent, RMB deposits by 19 percent, loans by 13 percent. The destination and maturity structure of loans became better. Short-term working capital loan and bill financing accounted for a substantially larger share, i.e. 47.7 percent, in the new loan. The excessive growth of medium and long-term loans were checked, its share in the new loan declining by 10.8 percentage points.