China likely to ease up slightly on financial tightening amid credit slowdown: Oxford Economics

SINGAPORE (May 22): China is likely to shift away from tighter financial policies amid a stronger-than-expected credit slowdown since December last year, even as GDP growth remains a key policy objective, according to research firm Oxford Economics.

“The government has put ‘boosting domestic demand’ back on the policy agenda while de-emphasising the task of ‘deleveraging’, fuelling speculation that China is shifting away from tighter financial policies,” says lead economist Tianjie He in a report on Tuesday.

However, He highlights that policymakers are not expected to make drastic changes in the policy stance nor back away from reining in credit growth and financial risks.

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