China Financial Daily

Central Bank: Strengthening constraints to prevent blind expansion of bank assets
Central bank on Sept. 17 announced the “2010 China Financial Stability Report”, the report suggests, the next phase, the banking industry to maintain a reasonable profit growth, sustained profitability optimization of the structure, and further improve the capital to supplement and restraint mechanisms, and constantly enhance capital strength. Report, should be combined with the latest changes in the New Basel Capital Accord, regulatory capital, continue to improve the institutional framework, strengthening capital constraints, to prevent the blind expansion of commercial bank capital.

Experts say the central bank does not tighten the net liquidity is still running
August 25, the central bank issued in 2009 No. 63 open-market transactions Bulletin: Issue a central vote-year 50 billion yuan; 28-day period for repurchase 10 billion yuan. Thus, in August the first 25 days, the three-month period and one-year central ticket distribution chain are increased in size. Meanwhile, during the period the size of the central bank’s repurchase ring is a more significant increase than 71%.

Although the tickets and are central repo rate has been stabilized, but by the size of the central bank’s intention to fine-tune increasingly evident.

Coincidentally, 25 of the stock market fell sharply again last Shanghai A-share composite index fell 77.63 points, led the market down the same day, while it is bank shares. Of course, the same day decline in banking stocks there are other multiple factors, including management’s tendency to tighten capital requirements, Shanghai Pudong Development Bank [20.69 -0.43%] for nearly 150 billion non-public offering is approved, the management intends to tighten the two sets of mortgage and the U.S. financial system has not fully stabilized and so on.

Suning to respond to the dynamic fine-tuning: the central bank in fact every day in the transfer
7, central bank Deputy Governor Su Ning of the State Council Information Office, introduced in the current macroeconomic situation and so on, and answering a reporter’s question. Photoʷ?reporter

He said that the “dynamic fine-tuning” fine-tuning of monetary policy does not mean, our current inflation problem does not exist

For the central bank’s “market-oriented means of the use of dynamic fine-tuning”, the central bank Deputy Governor Su Ning at the Information Office on the 7th at a news conference to elaborate. Su Ning emphasized that the so-called “dynamic fine-tuning” does not mean that the central bank to fine-tune monetary policy, and he believes that China is not the existence of inflation.

Correct understanding of “fine tuning” within the meaning of

Su Ning said, “Dynamic fine-tuning” is the operation of monetary policy, the focus of monetary policy, efforts to fine-tune the tempo. He also stressed that such fine-tuning, by means of market-oriented, rather than the size of the control method to achieve. He said that this fact has been fine-tuning, rather than fine-tuning until the second half. Month in fact the central bank, Zhou Zhou, every day the situation in the market for fine-tuning.