(Yicai Global) Jan. 27 -- China’s policymakers are not considering to withdraw policy support for the world’s second-largest economy prematurely, according to the country’s central bank governor.
To ensure policy consistency and stability, the government's package of economic stimulus policies will not be upended “too early,” Yi Gang said yesterday at a panel session of the World Economic Forum's virtual Davos Agenda. Monetary policy will hold steady to support China’s economic growth, he added.
Yi’s assurances may ease stock market jitters aroused by another central banker’s comments yesterday. The 21st Century Business Herald reported that Ma Jun, a member of the Monetary Policy Committee of the People’s Bank of China, said monetary policy needs appropriate adjustment.
Bubbles in some areas have already emerged, Ma said. Several major stock market indexes rose nearly 30 percent last year, and house prices in Shanghai, Shenzhen and other cities have ballooned recently, all of which is related to liquidity and leverage, Ma said.
Chinese equities made modest gains today after ending sharply lower yesterday following Ma’s comments.
Editor: Ben Armour, Xiao Yi