WSJ: China Freezes Lending to Curb Investing Frenzy

China Freezes Lending to Curb Investing Frenzy
WSJ | JAMES T. AREDDY

Chinese authorities are slamming the brakes on bank lending, in their latest attempt to curb the runaway investment threatening to overheat what is soon to be the world's third-largest economy.

In recent weeks, regulators have quietly ordered China's commercial banks to freeze lending through the end of the year, according to bankers in several cities. The bankers say that to comply, they are canceling loans and credit lines with businesses and individuals.

A China Banking Regulatory Commission official here confirmed that local and Chinese subsidiaries of foreign banks have been asked to ensure that loans at the end of the year don't exceed the total outstanding on Oct. 31. The official described the request as "guidance aimed at supporting the macro-control measures being implemented."

Congress to Yahoo: Boo! to You!

Yahoo execs defend role in arrest/jailing of Chinese journalist

Associated Press Erica Werner


WASHINGTON - Two top Yahoo Inc. officials on Tuesday defended their company's role in the jailing of a Chinese journalist but ran into withering criticism from lawmakers who accused them of complicity with an oppressive communist regime.

"While technologically and financially you are giants, morally you are pygmies," House Foreign Affairs Committee Chairman Tom Lantos, D-Calif., said angrily after hearing from the two Yahoo executives.

He angrily urged Yahoo Chief Executive Jerry Yang and General Counsel Michael Callahan to apologize to journalist Shi Tao's mother, who was sitting directly behind them.

Shi Tao was sent to jail for 10 years for engaging in pro-democracy efforts deemed subversive after Yahoo turned over information about his online activities requested by Chinese authorities.