Regarding the core of the recent central economic working conference: the monetary policy will remain steady and moderate throughout 2017; and give priority to prevent financial risks and assets bubble, ANBOUND believes that the central bank wouldn’t overly relax due to several potential risks, including the fast rebound in commodity price, and risks in real estate, capital market and other sectors. Therefore there is less chance of cutting both interest and reserve ratio, addition to the reduction of basic currency supply, the credit growth will further slow down. Nevertheless, the central bank would conduct short-term adjustment aiming at calming market if necessary.
