Related News
Hopes rise for easier policies
By Feng Jianmin |
November 23, 2011, Wednesday
|
Print Edition
Print Edition
A deputy head of the central bank said the government has curbed the rapid rise in prices and banks should offer more loans, sparking speculation that China's monetary policies may ease.
"The effects of controlling (prices) have taken effect," Hu Xiaolian, the People's Bank of China's deputy governor, said in a statement yesterday.
Hu said China should continue its prudent monetary policy and that loans be increased to the agricultural sector and small and medium-sized companies.
Analysts said the recent signs indicating the outflow of speculative money will also give the government more room to ease its monetary policies.
Data from the central bank showed foreign funds were flowing out from China in October for the first time in four years. The Chinese banks' yuan holdings stemming from foreign exchange, a usual indication of inflow or outflow of foreign capital, fell by 24.9 billion yuan (US$3.8 billion) in October from September.
"Investors are pulling money out of China on fears about the health of the global economy, and expectations that the yuan will appreciate in the near term have narrowed," said Katrina Ell, an associate economist with Moody's Analytics.
"With hot money flowing out of the country, this increases the scope for policymakers to ease monetary policies," Ell added.
"The effects of controlling (prices) have taken effect," Hu Xiaolian, the People's Bank of China's deputy governor, said in a statement yesterday.
Hu said China should continue its prudent monetary policy and that loans be increased to the agricultural sector and small and medium-sized companies.
Analysts said the recent signs indicating the outflow of speculative money will also give the government more room to ease its monetary policies.
Data from the central bank showed foreign funds were flowing out from China in October for the first time in four years. The Chinese banks' yuan holdings stemming from foreign exchange, a usual indication of inflow or outflow of foreign capital, fell by 24.9 billion yuan (US$3.8 billion) in October from September.
"Investors are pulling money out of China on fears about the health of the global economy, and expectations that the yuan will appreciate in the near term have narrowed," said Katrina Ell, an associate economist with Moody's Analytics.
"With hot money flowing out of the country, this increases the scope for policymakers to ease monetary policies," Ell added.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
