China Should Further Ease To Hedge Against Econ Downturn-Advisor

China should implement more expansionary monetary and fiscal policies against the risk of a rapid economic downturn in the short term, Zhang Ming, deputy director of state-affiliated National Institution for Finance Development, said on WeChat. Reductions in the reserve requirement ratios to provide liquidity and interest rate cuts are among the measures needed, said Zhang. China’s monetary policy must be driven by domestic needs and tolerate a moderate depreciation of the yuan against the dollar, which will leave room to lower risk-free long-term rates. China can still tighten controls on capital outflows should the yuan depreciate too fast, Zhang added.