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China set to raise rates to combat rising inflation: DBS

September 02, 2010  

From Richard Morrow

Surprisingly high inflation expectations along with strong levels of local consumer and loan demand will force the central bank to begin raising interest rates more sharply than expected, predicts the Singaporean bank. It anticipates three hikes by the second quarter of 2011.

Strong consumer demand and surprisingly high August inflation figures could cause China’s authorities to begin raising interest rates much earlier than expected, say economists at DBS.

A recent dampening of quarterly economic growth has left many China observers expecting...


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 SYNDICATED LOANS

Rank Bookrunner Value ($m) No. %Share
1 Industrial & Commercial Bank of China - ICBC 1,160 1 16.4
1 Bank of Communications Co Ltd 1,160 1 16.4
3 State Bank of India 964 3 13.6
4 Land Bank of Taiwan 400 7 5.6
5 Maybank Investment Bank Bhd 332 1 4.7
6 AXIS Bank 236 2 3.3
7 IDBI Bank Ltd 124 1 1.8
8 HSBC 92 2 1.3
9 BNP Paribas 92 1 1.3
10 First Commercial Bank Co Ltd 65 4 0.9
Subtotal 4,623 18 65.2
Total 7,090 32 100.0


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