China Pledges Ample Supply of Money to Spur Recovery

China’s central bank said the economy performed “better than expected” in the first quarter and pledged to keep money flowing into the financial system to sustain growth.

The People’s Bank of China will ensure an “ample” supply of money, it said in a quarterly monetary-policy report posted on its Web site today. New lending surged sixfold to a record in March as banks supported the government’s 4 trillion yuan ($585 billion) stimulus package.

The recovery’s foundations aren’t solid, with new lending overly concentrated on government projects at the expense of small businesses, the central bank said. The report highlighted “positive changes” in the world’s third-biggest economy, echoing remarks by Premier Wen Jiabao on April 11.  Read more about China’s central bank…