EconoChina

A blog on Chinese economy & society

To tighten or not to tighten, that is the question

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China A-share market went up by over 3% yesterday, mostly on speculation that the government is having second thought on its tightening measures. A researcher of the National Development and Reform Commission was quoted as saying that the proposed property tax had been scraped.

Well, the Commission issued a formal denial after market, pointing out whatever being said was purely a personal opinion. So, did someone committed a gaffe and let slip the truth without thinking through? Maybe. But then, perhaps the whole incident was staged and the government was just trying to test market reaction. The governor of the PBoC, Zhou Xiaochuan, pointed out bluntly that only domestic factors would be taken into consideration when setting monetary policies. And inflation is a serious domestic concern.

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Written by Cindy Luk

May 24, 2010 at 11:38 pm

Posted in China, Macro

Tagged with ,

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