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 China Business News. "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.
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.