China’s monetary easing to persist in near term

Analysts said the focus of PBoC on preventing idle capital circulation should be viewed as a move to ensure funds flow into the real economy.

BEIJING: China’s monetary conditions are likely to remain reasonably accommodative in the coming months, continuing to support credit expansion while contributing to steadier capital market expectations, analysts say.

They said that the focus of the People’s Bank of China (PBoC), the country’s central bank, on preventing idle capital circulation should not be seen as an effort to cool the recent stock market rally.