The Chinese authorities are putting flesh on the tightening policy they decided on at the end of 2009. The question for the months ahead is not whether Beijing will lay out a tightening policy for 2010 – it has already done so. As our colleague Larry Brainard explained in his recent report on China’s loan policy, the leadership feels sufficiently confident after last year’s recovery to push through with the tightening. This will cut new loans by 25 per cent from the runaway total for...
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