China Seen Shunning Excess Liquidity: Guan Tao

China is likely to stick to reform and revitalize the market rather than relying on more liquidity such as cutting interest rates, as the unbalanced recovery from impact of the pandemic has worsened the fundamental issues that the economy faces, Guan Tao, a former forex regulatory official and global chief economic of BOC Securities wrote in an article published on Yicai.com. Liquidity itself cannot force business expansion, more local government investments, or logistical breakdowns, Guan said. China should be on guard for risks of the yuan's sudden correction as other economies pursue easing, as well as surging commodity prices that fan inflation, Guan said.