Economics

Ex-PBOC Official Warns of ‘Huge’ Losses With Monetary Tightening

  • Sheng Songcheng says policy tightening can’t curb bubbles
  • Debate over central bank’s policy has roiled financial markets

Outside the People's Bank of China (PBOC) building in Beijing.

Photographer: Qilai Shen/Bloomberg
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China will risk “huge economic losses” if it tries to curb asset bubbles through monetary policy tightening, a former central bank official warned, adding to a debate that’s roiled financial markets this year.

Sheng Songcheng, a former director of the People’s Bank of China’s statistics and analysis department, said closer market supervision would be better than policy tightening measures to reduce speculation in financial assets.