During the recently held Lujiazui Forum, the top officials from China's financial regulators have made it clear that China will pursue prudent monetary policy.

The research team at ANBOUND Consulting is of the view that in order to reduce the ineffective supply of money, the central government will shatter the rigid repayment culture by allowing more defaults in financial products

In terms of regulations, the government should further adopt a robust and thorough regulation to ensure that the bottom line of systemic financial risk is never crossed.