Even after President Xi Jinping has asked for China’s central bank to trade government bonds, the outcome is likely to remain limited as the bank does not want to trigger negative outcomes for inflation and exchange rates.

Senior central bank official says China’s monetary policies are ‘effective and obvious when compared with foreign central banks’.

From intentionally setting up ‘bad banks’ in the ’90s to more recent bank takeovers, Beijing has a history of reaching into its deep bag of policy tools to make economic repairs.

Excessive levels of indebtedness and slow income growth among Chinese residents are constraining consumption, but for now China’s Politburo is relying more on domestic demand to fuel national growth.

Beijing again puts He Lifeng alongside senior cadres during a high-profile stop at the People’s Bank of China, leading to increased speculation about major economic policy changes.

A divergence in monetary policies between the US and China has made Beijing wary about easing its monetary operations this year, but analysts say the conditions to do so appear to be improving.

Premier Li Keqiang says China has refrained from ‘excessive’ money printing in recent years to prevent inflation and create room to counter new challenges.

Foreign investors have dumped Chinese equities and bonds at a rapid pace over the past two months, alarming officials in Beijing who are closely monitoring US rate tightening.