A blog on Chinese economy & society

To tighten or not to tighten, that is the question

leave a comment »

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.


Written by Cindy Luk

May 24, 2010 at 11:38 pm

Posted in China, Macro

Tagged with ,

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: