PBOC dep gov also at the structural reform event in Beijing

  • over supply and lack of supply exist at same time
  • China needs structural reform and total demand management
  • China should avoid overly loose monetary policy
  • to keep ample liquidity when expanding total demand
  • overly loose mon pol may bring depreciation
  • excessive loosening of mon pol will create asset bubble and increase downward pressure on yuan

PBOC still finding life in the real world is a bit tougher than they may have thought.