Mar 27, 2015

The Chinese central bank just announced that it will cut interest rates, but the market is more concerned about whether this means China is officially in the sweeping global game of quantitative easing. The Chinese central bank is now in a monetary policy dilemma: It is neither willing to embark on the track of excessive quantitative easing, nor ready to tighten currency policies. Instead, it is returning to neutrality, which doesn’t mean an orientation change in its monetary policies.

Feb 16, 2015

European quantitative easing policy lead to the depreciation of the RMB exchange rate, but this depreciation is being carefully and intentionally observed by China’s central bank to observe the actual impact on the Chinese economy. A more flexible and internationalized RMB will be better to guard against depreciation.

Jan 28, 2015

China’s central bank will maintain a neutral stance in 2015, in order to stabilize the stock market and provide support to the economy, writes Yi Xianrong.

Dec 12, 2014

China’s Central Bank is assessing changes in its international monetary policy in the following areas: RMB internationalization, becoming less dependent on U.S. Federal Reserve monetary adjustments, and containing the arbitrage of foreign speculative investment. With a major focus on the dispossession “outstanding funds for foreign investment,” the RMB is expected to experience moderate depreciation or fluctuation.

Nov 11, 2014

China has introduced a new housing credit policy, designed to increase demand for real estate, and to get China’s economy back onto a fast track for growth, writes Yi Xianrong.

Sep 15, 2014

China faces the challenge of reforming its economic policies, and cooling its housing sector. While the Central Bank is taking appropriate actions, there are numerous challenges that may inhibit future growth.

Jul 17, 2014

After the Renminbi depreciated for five consecutive months, the market has again seen signs of a pick-up. Some analysts believe the unusual change in RMB exchange rate means the RMB has stopped depreciating and begun returning onto the track of appreciation.

Jun 20, 2014

The decision of China’s central bank to pursue “directional drop quasi” means a reduction of the reserve requirement ratio, support will be given to the development of agriculture and small businesses, and there will be more regulation of China’s financial market. However, this quantitative policy instrument will be limited in its ability to enhance services for the real economy.

Jun 09, 2014

The RMB exchange rate should gradually reform with less government interference, writes Yi Xianrong.

Apr 19, 2014

China’s central bank will not change its monetary policy in the near future, but will rather keep a steady but tight policy to get both credit and monetary growth back on track. This could be the keynote of China central bank monetary policy for 2014, writes Yi XIanrong.