China is on guard against a resurgence of investment in overheated sectors, a banking regulatory official said on Saturday just days after a surprise interest rate rise.
Tang Shuangning, vice-chairman of the China Banking Regulatory Commission, told a financial conference that officials must continue to exercise macro-economic controls on overheated industries.
"We must prevent a rebound of over-investment," he said in a prepared speech posted on the commission's Web site www.cbrc.gov.cn.
"We should firm up any gains we have achieved so far through the macro-economic controls. It is not advisable to introduce new macro-control policies."
Tang gave no further details.
China said on Thursday it raised the one-year lending rate to 5.58 percent from 5.31 percent, in an effort to further cool growth in the world's seventh-biggest economy. Some economists expect other interest rate rises in the coming months.
"The macro-control accomplishments are still in the early stage, but the foundation is not steady. We must be vigilant and prevent a rebound," Tang said.
The rise in interest rates rippled through financial markets, undermining stocks and commodity prices on worries a slowdown in China could help retard global growth.
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