Risks to the Chinese economy , such as exchange - rate volatility , rising inflation and an over - heating currency market could lead China to tightening monetary policy next year , according to Sheng Songcheng , an adviser at People 's Bank of China . " The current monetary policy may have been a bit too loose " , but tightening monetary policy too much would lead to market collapse , Sheng said . However , an economic work conference said China should maintain a prudent and neutral monetary policy and proactive fiscal policy to reduce financial risks and asset bubbles .
Risks to the Chinese economy, such as exchange-rate volatility, accelerating inflation and an over-heating property market could lead China to tighten monetary policy next year, according to Sheng Songcheng, an adviser at People's Bank of China. "The current monetary policy may have been a bit too loose", but tightening monetary policy too much would lead to market turmoil, Sheng said. However, an economic work conference said China would maintain a prudent and neutral monetary policy and proactive fiscal policy to limit financial risks and asset bubbles.