Exit of easy money

With more foreign central banks having begun to tighten their credit supply nowadays, Chinese policymakers need to review the "moderately loose" monetary policy that has so far effectively powered a strong rebound of the national economy.

The prevailing assumption that a supportive monetary policy remains necessary in this country for the coming two quarters is largely a result of fears and obligations.

On the one hand, in spite of accelerated economic growth at home, Chinese officials are still very much worried about the weakness of the global recovery, particularly in the rich countries. If the export sector cannot resume its long-term role as a growth engine for the economy any time soon, China has to continue to fuel investment and consumption growth with ample liquidity supply.