China not facing same pressure as US Fed to shrink balance sheet: PBOC adviser

Shanghai

CHINA'S central bank will not take action to shrink its balance sheet like the US Federal Reserve as it does not face the same pressures due to its use of different policy tools, an adviser to the People's Bank of China (PBOC) said on Thursday.

The Fed is looking to start reducing its massive US$4.2 trillion portfolio of Treasury bonds and mortgage-backed securities beginning later this year. Most of the assets were purchased in the wake …