China"s financial stability affects global economy however it is not always reassuring, for instance "money shortage" that occurred not long ago is a good example. ANBOUND’s chief researcher Chen Gong stated that China’s liquidity is indeed changing and the change of interest rate proves the existence of the problem. China’s financial market is different from other countries as it is still at the development stage, thus trust, bond and fund products quickly form into particular market scale. Market development stage occupies large amount of liquidity and the rising interest rate is reflected in market data. By interpreting the above situation, Chen Gong believes that China should further ease the monetary policy and it should not be a big problem to release certain amount of money into the market.
