The latest official tone came from central bank’s D

puty Governor Chen Yulu over the weekend. He reassured that monetary policy will remain “p

rudent” and “with proper intensity”. The growth of broad money supply (M2) and aggregate social financi

ng should align with nominal GDP growth, according to a statement on the central bank’s website.

The deputy governor delivered a speech at the 39th mee

ting of the International Monetary and Financial Committee in Washington.

Chen also stressed that the further improvement of the exchange rate regime wo

uld “keep the renminbi exchange rate generally stable at an adaptive and equilibrium level”.

Lu Ting, chief economist in China with Nomura Securities, wrote in a research note that de

spite solid credit growth, underpinned by ongoing monetary and credit easing measures, the government is u

nlikely to engineer another long and large-scale “credit boom” due to much narrower policy room than before.

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