China c.bank says 2013 GDP growth to exceed 7.5 pct - Xinhua

Reuters

BEIJING, Oct 11 (Reuters) - China's economic growth shouldexceed 7.5 percent this year, deputy central bank governor YiGang was quoted by Xinhua as saying, the latest expression ofconfidence from Beijing that the world's No. 2 economy issteadying.

Yi was quoted as saying on the sidelines of theInternational Monetary Fund meeting that growth could hit 7.6percent, and that the government had the nation's shadow bankingsystem and its debt problems under control.

"I think for this year we're going to have certainly above7.5 percent growth rate," Yi was reported by Xinhua to have saidin Washington. "Maybe 7.6 percent (or) something like that."

After cooling in 12 of the past 14 quarters, China's economyis finally showing signs of stabilisation, helped in part bygovernment measures to shore up growth, including lowering taxesfor small firms and quickening infrastructure spending.

Growth in exports, which had slumped last year, is alsopicking up on a firmer U.S. economy.

China is set to releases its third-quarter gross domesticproduct data on Oct. 18 and analysts expect growth to quicken to7.8 percent from a year ago.

Yi did not elaborate on how the government is controllingdangers in China's shadow banks and its government debt -- twoareas of the financial sector widely regarded to be among thebiggest threats to the Chinese economy.

Analysts worry that lightly-regulated shadow banks,estimated to be worth 34 trillion yuan ($5.6 trillion) andaccounting for a third of outstanding credit, may inflate assetbubbles and worsen bad debt problems with their lax lendingstandards.

Some 9.7 trillion yuan of debt incurred by local Chinesegovernments have also raised investor concerns that they couldburden banks with a wave of dud loans.

The state auditor is currently auditing local governmentfinances across China for the second time since 2010, and is setto release its findings before the year-end, including akeenly-awaited figure for the size of total outstanding publicdebt.

Economists including those from Standard Chartered havewarned that the latest audit could show total government debtdoubling from the 10.7 trillion yuan found in 2010.

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