Monetary policy to fine-tune market concerns liquidity tightening

In Friday, in Shanghai, "2009 Lujiazui Forum," said Zhou Xiaochuan, governor of the People's Bank of China: "Moderately loose monetary policy will continue, the specific operational strength needs to take a step forward, according to the actual needs of dynamic fine-tuning." Mr Zhou's "fine-tuning" theory raises the likelihood that the central bank will tighten credit judgments.　　In this regard, the Economist, represented by Xu Xiaonian, said: "It is necessary that the market does not need so much liquidity now, while the Economist, represented by Wang Qing, expressed concern." Will monetary policy turn?　　Both the real economy and the stock market are concerned about the highly sensitive subject of this far-reaching. Monetary policy will fine-tune the moderately loose monetary policy has lasted six months, under this policy guidance, the first quarter of this year bank loans added 4.58 trillion yuan, year-on-year growth of nearly 30%, the highest growth since 1994.　　However, the banks ' massive release of liquidity to the market has also sparked a series of concerns about tightening credit, which has repeatedly tested the real economy and capital markets for a sharp fall in new lending in April and a growing market focus on where monetary policy is heading. In the "2009 Lujiazui Forum" held in Friday, central bank governor Zhou Xiaochuan issued an authoritative view of the current monetary policy.　　Mr Zhou said the surge in new bank lending in the first quarter would not spark inflation, but the massive release of liquidity in the US, EU, UK, Japan and other major economies in the context of the international financial crisis could lead to bubbles. April Credit data released by the People's Bank of China on May 11 showed that in April our country added RMB loans of 591.8 billion yuan, more than 122.9 billion yuan, but the month's credit volume is less than March delivery volume of One-third. It also raised concerns about the central bank's tightening of credit.　　In April, Mr. Zhou said there was no adjustment to the credit policy of the central bank and a sharp fall in the credit chain was the cause of commercial banks themselves, possibly the April data taken in the last days of March. "The current monetary policy is not moderately loose, it is very loose, and it is very harmful to us," said Xu Xiaonian, a well-known economist who has made a statement to Mr Zhou. "The market does not need so much liquidity now and it is necessary to do some fine-tuning now," said Ha Jiming, chief economist at CICC. "But before fine-tuning, there are other ways that you can consider, not prematurely, to reduce the power of policy stimulus." "Some economists are worried, but many have expressed concern about the fine-tuning of monetary policy," he said. Wang Qing, chief economist at Morgan Stanley Greater China, said that China's credit expansion was no different from the US bailout policy, and was a hurricane-style crisis deal. "In the current economic situation, to do so (credit expansion), China will be similar to the Asian financial crisis, such as the breakdown of corporate capital chain." Wang also said it was necessary to extend credit expansion to support investment expansion on a larger level. If our money doesn't investWhat can I do? If you think about it, you hold US Treasuries.　　In Wang Qing's view, instead of holding US Treasuries, it would be better to launch domestically. If the central bank does tighten liquidity, it is no doubt a bad thing for the stock market that is choosing to go. Since the end of last year, the stock market rebounded 1000 points, the most fundamental motive is liquidity abundant.　　The Galaxy Securities release analysis said: "Once the central bank issued a signal to tighten credit, so sensitive stock market will certainly respond to this, may trigger a round of adjustment." The central bank's fine-tuning of the argument, there are different angles of interpretation. From the recent situation, April, the central bank from the beginning of the month that is to increase the strength of the withdrawal, to achieve three consecutive weeks of net withdrawal. However, since the end of April, there have been subtle changes in the central bank's open market operation: from net withdrawal to net delivery. From May 4 to May 8, the central bank to the market net investment of 33 billion yuan, more than the previous week to put more than 16 billion yuan. Liu Yuhui, director of the China Economic Evaluation Center at the Institute of Financial Studies at the Chinese Academy of Social Sciences, said that the current balance of payments surplus in China is decreasing, which will inevitably affect the supply of market liquidity.　　In order to maintain ample liquidity, the central bank may open the floodgates by easing the withdrawal strength in the open-market operation. Not long ago, Premier Wen Jiabao reiterated that China's stimulus measures were far more than the 4 trillion Yuan investment plan released late last year, and that other policies will be introduced in the year. Premier Wen's stance, interpreted by the market as "loose" is still the main tone of the two quarter monetary policy. Newspaper reporter Tian Zhiming