Various signs indicate that instead of loosening credit, China has targeted "lower financing costs" as a priority for the second half of this year.

On Aug 14, the State Council (cabinet) issued a 10-point document that outlines plans to cut corporate financing costs. The document follows a call by Premier Li Keqiang in July to reduce enterprises' funding costs.

China's borrowing costs are among the world's highest, and they have risen rapidly in the past year. In 2013, the average one-year loan rate was 6.15 percent. In Germany, it was 3 percent and in the United States, just 2.25 percent. And this year, the rate has surged 60 percent, according to Zheng Xinli, executive vice-president of the China Center for International Economic Exchange, a government think tank.