Monday, February 17, 2014
China Central Bank Will Maintain Steady yet Tightening Monetary Policy
ANBOUND
The monetary and finance statistics released by the central bank is better than expected. To a certain extent, it reduces market concerns on economic slowdown. This year economic trend will be quite similar as last year; the central bank is anticipated to adopt steady yet tightening policy to promote economy de-leveraging as well as risks mitigation prevention. The central bank is unlikely to encounter another round of "money shortage" and will introduce a series of more stringent rules and include shadow banking into its regular supervision. When necessary, the central bank will use variety of tools to inject liquidity to the market.