Changes in China's credit environment cause changes in monetary policy direction
ANBOUND
After the international financial crisis, China's domestic insurance, trust, brokerage and other types of non-bank financial institutions show rapid rise; this is especially for trust, which has changed China’s credit environment. Anbound believes that the monetary policy decision-making and control must also follow the change. Banks’ bad assets, shadow banks and bad bonds have increased, while the accumulation of Internet financial risks and real estate bubble are considered as major financial risks. Taking into account the changes in the international financial environment and the devaluation of renminbi and capital outflows, in the future of China will be more focusing on the neutrality of the monetary policy to maintain the financial side’s "tight balance". The Central Bank will emphasize on "monetary policy and macro-prudent policy" to curb the excessive expansion of credit, inhibit the enterprise leveraged too fast rise, and enhance monetary policy support for the real economy.