China Should Sell More CGBs for Fiscal Stimulus: Ex-PBOC Advisor

China should consider selling more central government debt to boost expansionary fiscal policies given the uncertainties including the recurring pandemic and risks of the U.S. Federal Reserve raising rates, Yu Yongding, a former member of the PBOC's monetary policy committee, said in an interview with the Economic Observer. Monetary policies should play a supporting role to help drive down the government bond yield curve and implement the fiscal stimulus, and the PBOC should even consider QE if necessary, Yu told the newspaper. China should also tolerate relatively high inflation so that the higher commodity costs seen in H2 can be passed downstream to consumer goods, thus help boost business profits and promote recovery, Yu said.