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He also estimates that up to 9 trillion renminbi of that is nonperforming and will require a government bailout.
China Mobile had 256 billion renminbi of cash at the end of June, according to its interim report in August.
They disbursed 600 billion renminbi of loans during the first week of 2010 alone, according to local media, more than in the whole of December.
Reuters reported on May 31 that China's regulators planned to shift 2 trillion to 3 trillion renminbi of debt off of local governments to ease the default threat.
The 20 billion of renminbi-denominated bonds issued in November paled next to the 60 billion renminbi of new deposits in Hong Kong.
So it is likely that the government will stand behind the some 2.1 trillion renminbi of outstanding ministry of railways debts.
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Bloomberg News quoted economists at Barclays Capital as saying that the rise in reserve requirements would pull about 300 billion renminbi out of the pool of money available for lending.
Some students in Yantai said their school had taken 500 renminbi out of their monthly wages.
Beijing has offered to lend billions of renminbi to other governments, but most of its currency swaps remain undrawn.
A weaker renminbi — estimates of the extent of the undervaluation range as high as 40 percent — makes Chinese exports cheaper and foreign imports more expensive.
According to data released on Friday, China's total social financing for April was 1.75 trillion renminbi, ahead of the median estimate of 1.5 trillion renminbi.
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