Currently, if the monetary policy were to make a bigger contribution towards steady growth of the Chinese economy, it should not be restricted to creating market liquidity, but rather the pressing need is to overhaul the allocation of financial resources and solve the problems of idle funds systematically to enhance the efficiency of liquidity.

Anbound's scholars are of the view that in order to solve this type of problems, it must first break the soft budget constraint, clearing out the enterprises with market-based approach.

Secondly, the nation’s vision and important projects should change from the simultaneous credit expansion of both the treasury and financial institution.

Thirdly, the loan should not favour the state-owned enterprises (SOEs) but rather it should be given to the more efficient institutions in the market.