China ordered state-owned banks to limit lending as it moves to control inflation and prevent a credit bubble.

The Chinese government told the six largest state-owned banks to increase their reserves to 17.5% of deposits from 17%, The Associated Press reported.

State-owned banks were previously told to step up lending in a bid to stimulate the economy. The economy grew at an annual rate of 10. 3%…

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China Moves to Limit Bank Lending originally appeared on DailyFinance on Tue, 12 Oct 2010 08:39:00.

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