Source: CRI    Published: 2016-5-4

Recent official data shows China`s new yuan loans rose to a record of 4.6 trillion yuan or about 712 billion U.S. dollars in the first quarter.

The figure is up sharply from the 930.1 billion yuan a year earlier.

The situation is reminiscent of the credit build-up during the global financial crisis starting in 2009 when the authorities turned to credit to bolster the economy.

The surge in loans has fanned speculation that the Chinese government may turn to a massive stimulus program.

However, a commentary from the Xinhua news agency has stressed that China will not resort to large stimulus measures, and has said the fears are unfounded.

The article has also said that China is still addressing the side effects of the previous stimulus package, such as overcapacity.

The commentary has also stated that stimulus is unnecessary, as the Chinese economy is showing increasing signs of stabilization, meaning there is no risk of major turbulence or crisis for the global economy.

For more on this topic, CRI`s Shane Bigham earlier spoke with John Ross, senior fellow with the Chongyang Institute for Financial Studies at Renmin University.