Stock Market Watch

China Lending $1.1 Trillion

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The Chinese government is planning a target of $1.1 trillion as loan money for the year 2011. This move was a result of successive talks between the US government and the Chinese government. The Chinese government is looking for an inflation of 4 percent and an economic growth of 8 percent.

The Bank of America (NYSE:BAC) and UBS (NYSE:UBS) had estimated a much lower quota than the $1.1 trillion that was announced. The new loan of $1.1 trillion will in fact help the banks to set aside three or five times more reserves. The Chinese stocks rose immediately preceding this announcement as a sign of investor’s trust in this move.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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