Lend support to real economy
Government must build an effective financial market that serves transformation and upgrading and the demands of SMEs
Against the backdrop of a fluidity policy that is prone to tightening and the accelerating interest rate marketization, as well as the substantial shift in the United States' monetary policy, it is urgent that China stabilize its economic growth and adjust its economic structure through enforcing a set of policy combinations and lowering the financing costs for the real economy.
Recent financial data indicate China's social financing suffered a drastic contraction in February and the newly increased financing volume in the first two months saw a negative growth from a year earlier. As the result of its moderately tightening monetary policy and continuous efforts to rein in shadow banking activities, the country's M2 supply is now within a reasonable growth range and its entrusted and trust loans have been on the decline.
