3 Min Read
* A smaller percentage of bankers call policy appropriate
* Despite tighter money, more bankers confident on economy
* Survey of entrepreneurs also shows greater confidence (Adds details, context)
BEIJING, June 20 (Reuters) - Nearly one-third of Chinese bankers feel the country's monetary policy has been "relatively tight" in the second quarter, a central bank survey showed on Tuesday. A total of 30.1 percent of bankers believed monetary policy was "relatively tight" in April-June, according to the survey, an increase of 9.8 percentage points from the first quarter.
About 67 percent of respondents said the policy is appropriate, down 6.9 percentage points from the percentage saying that in a first-quarter survey.
The increase in citing of "relatively tight" appears to reflect intensifying worries about a liquidity squeeze as a vigorous regulatory clampdown on riskier forms of financing has kept liquidity conditions unusually tight this year.
But while more bankers to feel the heat of tighter money, their confidence about the economy rose in the second quarter. An index in the central bank survey on confidence was 67.8, the highest since the fourth quarter of 2013, as profitability edged up. A reading above 50 indicates business expansion.
A separate survey published by the central bank showed Business confidence among entrepreneurs in China also picked up to its highest level in more than three years.
The entrepreneurs' confidence index rose to 65.4 percent in the second quarter, 3.9 percentage points higher than in the January-March, and only slightly below the 67.0 level in the first quarter of 2014.
China's economy generally remained on solid footing in May, but tighter monetary policy, a cooling housing market and slowing investment reinforced views that it will gradually lose momentum in coming months.
China's fast start to the year led the International Monetary Fund last week to raise its 2017 growth forecast to 6.7 percent from 6.6 percent in April, though it recommended Beijing accelerate reforms and rein in credit expansion. (Reporting by Beijing Monitoring Desk and Yawen Chen; Editing by Richard Borsuk)