China cabinet says to channel credit to economic growth

BEIJING (REUTERS) - China's cabinet reaffirmed on Wednesday that it would make sure that credit growth supported the real economy and would control the flow of new money into industries struggling with overcapacity.

The State Council, at a regular meeting chaired by Premier Li Keqiang, also reiterated that China would maintain prudent monetary policy.

Credit growth in China has been rapid this year, but much of the money had failed to reach the real economy, raising concerns over mounting debts that could turn sour and a lack of investment to help turn around the current slowdown.