M2 money supply growth will.............>

CHINA PRESS: M2 money supply growth will accelerate back above 10% next year as

the impact of deleveraging declines, Sheng Songcheng, counsellor to the People's

Bank of China, said Saturday at a financial conference in Hangzhou. The

expanding gap between the growth of M2 and total social financing has been due

to financial regulation and deleveraging, Sheng said, explaining the slowdown of

M2 growth resulted from the reduction of banks' lending to non-bank

institutions. The yuan exchange rate will fluctuate in a range of 6.5 to 6.6 to

the dollar this year and liquidity will be stable under a tight policy bias,

Sheng noted. Chinese interest rates are likely to rise in the short term, but

upward momentum in the long term has not formed yet, Sheng argued. (Sina

Finance)