It is estimated that more than 700 billion yuan (US$97.5 billion) has been released for circulation in January, hitting a record high. Analysts said that in addition to the new share issue, the upcoming Lunar New Year, which lands next week, is the main reason why the central bank (The People's Bank of China) may ease currency circulation restrictions. Meanwhile, taking into account current predictions that the world economy is likely to slow down, China would continue to make any necessary adjustments to its monetary policy.
The central authorities have emphasized grasping a clear and correct idea of the prospective impacts that the world economy would make on China and adopting proper macro-control policies. Therefore, the tight monetary policy needs to be reconsidered and proper adjustments should be made to the current measures of withdrawing currency from circulation, analysts said.
For more details, please read the full story in Chinese. (http://finance.sina.com.cn/g/20080201/05364480943.shtml)
(China.org.cn February 1, 2008)