The People"s Bank of China, the central bank, publisbed a report on the execution of monetary policy in the second quarter, saying there are many difficulties and challenges confronting the Chinese economy. Lu Zhengwei, a senior economist at Industrial Bank Co. Ltd., examined the report and pointed out the excessive bank lending in the first half of this year may give rise to serious loan problems. He shared his view in the China Securities Journal. Edited excerpts follow:

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