China Should Act before Fed's Tightening: Ex-Officials

China should prepare its macro policies before the Federal Reserve’s upcoming “steeper-than-previously-expected” monetary tightening, the 21st Century Business Herald reported citing a speech by Yu Xuejun, a former official of the China Banking and Insurance Regulatory Commission. The Fed may start hiking interest rates as early as in March, possibly by 25 bps, followed by another three hikes over the year, the China Securities Journal said citing ex-Minister of Finance Zhu Guangyao. Zhu warned that if the Fed starts to accelerate Tapering at the same time as raising interest rates, such stronger impact on emerging markets should be highly vigilant, the newspaper said.