China's President Xi Jinping's Speech Suggests New Monetary Policy

China's President Xi Jinping's Speech Suggests New Monetary Policy

By
Xiao Wei Ling
1 min read

Chinese President Xi Jinping's recent speech has sparked speculation among traders regarding a potential shift in monetary policy. The speech suggests that policymakers may start trading government bonds to regulate market liquidity, aligning China with strategies used by major central banks like the Federal Reserve. Xi's call for the People’s Bank of China to increase the buying and selling of government bonds in its open market operations hints at a significant policy pivot for the central bank, which hasn’t made a significant bond purchase since 2007.

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