Free Trial

MNI BRIEF: China Policy Space Shrinking Due To Debt: Ex FinMin

BEIJING (MNI)

The space for fiscal and monetary policy in China is shrinking due to the high debt level, Lou Jiwei, former finance minister, told the 11th Caixin Summit Friday adding that the concern is that the global economy is far from recovery while asset prices are already high.

China's central bank should consider withdrawing its easy policy at a gradual pace now, but fiscal policy will still be supportive next year, Lou added.

Referring to the election outcome in the U.S. he said that if Joe Biden took office, he would cooperate with other countries, including China, to improve the global economy.

MNI Singapore Bureau | +65 9 632 1991 | sumathi.vaidyanathan.ext@marketnews.com
True
MNI Singapore Bureau | +65 9 632 1991 | sumathi.vaidyanathan.ext@marketnews.com
True

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.