PBOC says will implement appropriately loose monetary policy

• To keep liquidity ample
• To adjust and optimise policy strength and pace at appropriate time
• Will promote reasonable rebound of prices, maintain prices at a reasonable level

As is needed, the PBOC will have to stick with further easing of policy conditions to try and stimulate the economy. The stock market is showing much enthusiasm again as investors are starting to be optimistic after so many years of setback. But a lot will hinge on Beijing really driving a revival in domestic demand. That’s the big thing to watch out for with China at the moment.

This article was written by Justin Low at www.forexlive.com.