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Report shows China growth slowing slightly
By AMY CHEUNG
Published: July 09, 2006 12:00 AM
A report released Monday on new loans and money supply in China show signs of a slight slowdown in growth, though overall economic growth is forecast to remain at about 10%, writes Associated Press. China's M2, the country's broadest gauge of money supply, rose 18.4 percent in June from the same month a year earlier, down from a 19.1 percent increase in May, the state-run newspaper China Securities Journal reported.   Chinese economic planners have expressed alarm at the continued surge in lending, saying it could lead to financial problems if investments in redundant factories and showcase real estate projects end up being unprofitable. Although the report said that the slight decline in growth in key data suggests that efforts to tighten credit may finally be taking hold, Chinese government economic researchers are still optimistic about the 10% economic growth.  
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