China's Central Economic Work Conference convened at the end of last year made it clear that the monetary policy in 2017 should be kept "stable". Since the beginning of the year, the signs of short-term tightening of monetary policy seem to be increasingly obvious. We believe that a major problem in China's economy is that over-lending of banks over the years, coupled with the constraints of the soft budget of state-owned enterprises and local governments, has caused a large number of inefficient and inefficient investments, resulting in excessive backlog of China's overall debts. This is why the Central Bank stresses the need to control general credit growth to curb financial leverage by raising the rates. Therefore, the next step should be focusing on banking and semi-banking institutions providing inefficient credit to state-owned enterprises, overcapacity industries and local governments, as well as slowing down the scale of debt from further rising and implementing total monetary policy.