Monetary tightening emerges as risk to Chinese economy
China economists increasingly see tighter monetary policy by the People’s Bank of China as a downside risk, voicing concerns that efforts to curb capital outflows and a real estate bubble will weigh on the economy. Tighter monetary policy has surged to second place on a list of economists’ top concerns about China in a new Nikkei/NQN survey. As in the previous quarterly poll, respondents expressed the greatest concern about a downturn in real estate. Asked to rate how bubbly the market is on a scale of 1 to 10, economists pegged it at 7 on average, unchanged from the last survey.
