Experts call for clear deleveraging target

Money supply and credit growth in August weakened

Fast deleveraging and gloomy credit demand may hamper the Chinese financial system's efficiency in funding the real economy, said analysts, and measures should be prepared to avoid market fluctuations.

A "financing cliff", or a dramatic drop in available funds, should be prevented, given the recent performance of the financial market, and this requires the monetary authority to state a clear target and the pace of the ongoing deleveraging process, said a group of economists in a recent report issued by Tsinghua University.