London Telegraph 
Tuesday, June 30, 2009
Half of the 5.8 trillion yuan (£522bn) of stimulus loans issued by Chinese banks have flowed into the country’s stock and property markets, inflating new bubbles, according to senior Communist officials.
Under orders from the government, China’s banks have flooded the economy with new credit this year, advancing more money in the first six months than the total for 2008.
It is the biggest wave of money since the People’s Republic of China was founded in 1949. The loans are part of a stimulus package to spur domestic investment and consumption and help the economy through the financial crisis.
However, a significant proportion has been diverted into shares and property, with the Shanghai Stock Exchange rising 60pc since January.