PBOC working paper cited by Reuters 15 Feb

  • China should be sure to avoid liquidity crisis and deflation trap brought about by rapid deleveraging
  • should let market forces play decisive role in deleveraging process
  • should maintain prudent and neutral macro policy
  • should reform financial regulatory system, all defaults

All part of a work in progress for China but I'm not sure just how much they really want to/should leave to "market forces".