By Caijing reporter Wen Xiu

From Caijing Online

Analysts say China’s major commercial banks are likely to remain cautious with their 2009 credit targets, despite countrywide stimulus policies.

This is true of the country’s two largest state-owned commercial banks, which both expect credit growth in 2009 to keep nearly the same pace as last year, a source close to the banks told Caijing.

Industrial and Commercial Bank of China (SSE: 601398, HKSE: 01398), which has kept its loan growth at a low level compared to other banks, aims to provide 500 billion yuan in new credit in 2009, as well as increase lending for merger and acquisition deals.

China Construction Bank (SSE: 601939, HKSE: 11939) anticipates maintaining 16.5 percent credit growth in 2009, which also comes out to about 500 billion yuan. In 2008, the bank made 508.5 billion yuan in new loans, slightly below the industry average.

Credit growth in the first half of the year will come mainly from infrastructure projects, say experts, as the current slowdown will keep loan demand soft from other industries.

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Full article in Chinese: http://www.caijing.com.cn/2009-01-15/110048404.html