Unproved source in China says Chinese leaders decided to keep the yuan rate basically stable at the central economic working conference, which closed on Monday. This is because fluctuation in exchange rates will cause huge difficulties for Chinese traders who often survive on very narrow profit margins.

A Hong Kong newspaper reported that the China Banking Regulatory Commission plans to limit new loans next year to between 7 trillion yuan and 8 trillion yuan, while another report last week in the China Securities Journal, also reported that new bank lending may fall to about 6 trillion to 7 trillion yuan ( US$880 billion to $1 trillion ) in 2010 from roughly 10 trillion yuan this year. Four of China’s 5 biggest banks have reported increases in special-mention loans in 2Q,which could indicate potentially high credit risk in banking system.