Monetary policy tendency in 2010

The present hotspot is about the issue of tightening the monetary policy. At the meeting of UBS about QFII, vice-director of PBOC Yi Gang has fully debated Qin Xiao, Chairman of China Merchants Steam Navigation Company. Yi Gang thinks in 2010 it will continue exercising moderate easy policy, and enhance effectiveness of the policies. In the same time, it will maintain rational liquidity among banking sectors, and to lead financial sectors in keeping balance of credit scale to prevent abnormal flaps at the shift of quarters or months. He believes that CPI and PPI will present comparatively small figures this year, if the controlling measures having worked well.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

While Qin Xiao stresses the necessity to adopt a neutral policy, that it would be a worse effect to the country by the aid of fixed asset investment to promote rapid growth of economy. He thinks it’s not fearful with slightest downturn, so the trend of asset price should not be overlooked.

Yuan Shuqin, director of UBS securities, says when referring the  opposite opinions, it sees the worldwide trend of exiting  moderate policy, China should put its targets on “adjusting” and “keeping balance”. As QFII investor, she will closely follow the ongoing of monetary policy so as to make up the whole year’s plan.