Joseph Yam, former Chief Executive at the Hong Kong Monetary Authority, the city’s de facto central bank, spoke to reporters in Hong Kong on the outlook of China’s economy and the European debt crisis. Yam is also an executive vice president of the China Society for Finance and Banking.
On the outlook for China’s economic policies:
“The market shouldn’t expect China will loosen policy very soon. China’s prudent monetary policy stance is appropriate. If they loosen that very soon, I would indeed worry about a significant slowdown in the economy.”
On the European debt crisis:
“Europe’s problems are very significant, I am very worried about that. There are signs of improvement in the U.S. economy but in Europe, there are still a lot of problems that haven’t been resolved.”
Policy makers “need to have a great determination to support the banking and financial system at all costs. Otherwise who will have confidence in these financial institutions?
“I can’t see a good solution out there right now.”