China to adopt more targeted monetary policy to spur economy and high quality growth

CHINA will adopt a monetary policy that is more targeted to fuel its economic recovery, a top official said, but economists fear that deep structural issues will challenge the growth.

In a recent interview with Xinhua, China Banking and Insurance Regulatory Commission chairman Guo Shuqing said this year’s monetary policy would focus on expanding effective demand and deepening supply-side reform.

“Converting the current total income into consumption and investment to the maximum extent possible is the key to faster economic recovery and high-quality growth, and financial services have a lot to offer in the process,” said Guo, who is also party secretary of the People’s Bank of China (PBOC).