Money circulation in China stable, economy deadlocked says stats spokesman

[BEIJING] The amount of money in circulation in China is stable and the direction of China's monetary policy remains unchanged, a spokesman for China's statistics bureau said on Wednesday, adding the economy faced some challenges.

"At present, China's economy is deadlocked between upward and downward momentum," said Sheng Laiyun, spokesman for the National Bureau of Statistics, according to a statement posted on China's state-run news agency Xinhua. "This means China's upward economic trends face pressure and downward trends have support."

The rise in China's producer price index (PPI) in April was due to many factors including recent shifts in futures contracts and rising global prices for raw materials including crude oil, he said.

But supply continues to exceed demand for raw materials both domestically and internationally, he added.

China's overall employment situation is stable except in regions dominated by traditional industries like steel and coal. The Chinese government is aware of and dealing with the problems presented, the statement said.

REUTERS