China’s capital market faces inflated asset prices even as the inflation risk of the real economy is controllable, a Shanghai media outlet reported citing Zhang Xiaohui, a former assistant governor of the (People’s Bank of China).
Key takeaways
“As China normalizes monetary policy, it should maintain stable liquidity so as not to spook the market concerned about a possible tightening.”
“The PBOC should also take precautions for rising inflation and interest rates in overseas economies and increase the efficiency and transparency of its policy decisions to better manage expectations.”
more to come …
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