From a People's Bank of China's quarterly report, some remarks from the Bank on policy:
- will maintain normal monetary policy for as tong as possible
- will keep macro leverage ratio basically stable
- reiterates that prudent monetary policy will be more flexible and targeted
- will improve the mechanism for preventing and dealing with bond default risks
- China has no foundation for long-term inflation or deflation
- will further implement the prudent management system for real estate finance
- will keep yuan exchange rates flexible and let market play a decisive role in the formation of yuan rates
(Headlines via Bloomberg)
As I posted yesterday:
- The recent series of defaults by state-linked companies has sent shudders through China credit markets in past days and weeks. More here: China Securities Journal says some stimulus exit very likely, but no rate hike soon