The dive in lending of the Chinese banks in the first initial three months of the this year, is speaking volumes for the useful steps that Government took for fixing the new loans.

According to Central Bank it has been stated that for three months from January to March, the lending recorded by the bank was worth 2.6 trillion Yuan that indicated a 43% decline to the 4.6 trillion Yuan lent previous year.

This step of restricting the lending by the state is an effort for controlling "overheating". Another reason for this decision is that the state also wants to control the prices that can mount to an unmanageable height.

The boundary set for the lending for complete year of 2010 is that of 7.5 trillion Yuan, which is fairly down than what was the limit of 9.6 trillion Yuan last year.

It has also been known that towards the end of 2008, a 4 trillion Yuan stimulus plan was introduced by the Government in order to strengthen the domestic economy, which in turn resulted in a remarkable elevation in the economy that is of 8.7% in 2009.