Ms Ulrich: Policymakers worry about the risk of asset price bubbles

Economic observation Network correspondent Mingxia the PBOC decided to raise the renminbi deposit reserve ratio of 0.5%.　　In a report to the managing director of JPMorgan Chase, China Securities and Commodities chairman, Jing Ulrich, a series of moves by the central bank has made it clear that policymakers are sticking to promises to steer credit to pre-empt rising inflation and avoid asset bubbles. She said policymakers were more concerned about overheating in specific sectors and the risk of asset price bubbles. "We found that the Chinese central bank has cut the size of the stimulus and the authorities have made it clear that the regulation of real estate loans will be tightened to curb the" too fast "rise in some cities. "Ms Ulrich predicts that China may gradually tighten policy in the first half of 2010, and concerns about the health of capital inflows and export recoveries will limit the tightening of interest rates," and we believe that bank lending growth will rise 20% to 30% more modestly than the 2009 level, There will also be measures to control the size of monetary policy using bank reserve requirements. "When it comes to the stock market, she points out that the mood is now different from a year ago, and investors seem to have taken full account of the growth prospects of China's economy." "We believe there will be a catalyst for China's stock market growth in the first quarter," he said. New liquidity injections and earnings revisions will support the Chinese stock market's performance in early 2010.　　But she also cautioned that if China's monetary policy views become more neutral, the Chinese stock market will be more challenging in the second half of 2010. The People's Bank of China announced late this evening that it would raise the reserve requirement for deposit-taking financial institutions by 0.5% per cent starting January 18, 2010.　　In order to enhance the financial strength of agriculture, support spring plowing plowing, rural credit cooperatives and other small financial institutions not to raise. (This article is launched by the Economic Observation network and Sina Financial cooperation)