From Forbes Report:
A state-run think tank has suggested that the government further tightens credit and land supply to curb excess liquidity and ease excessive growth in fixed asset investment, according to a report published in Shanghai Securities News .
“The authorities may raise middle and long-term lending rates to further enhance control of middle and long-term loans so as to curb overinvestment in fixed assets,” said the State Information Center, a government think tank.
It also suggested that the authorities may further raise the banking reserve ratio to an “appropriate level” if the previously announced hike proves ineffective in reducing liquidity in the banking system.
