China's high saving rate may trigger overheating: central bank governor

13:28, May 20, 2011      

Email | Print | Subscribe | Comments | Forum 

China's high savings rate may lead to increased investment, which could in turn trigger economic overheating or asset bubbles, said Zhou Xiaochuan, governor of the People's Bank of China, the country's central bank, at a forum Friday.

Zhou called for caution against "cyclical issues" brought by the high savings rate while delivering a speech at the Lujiazui Forum in Shanghai.

The Chinese government needs to shift to a prudential regulatory framework "as early as possible" to strike a balance between supporting economic growth and taming inflation amid rising consumer prices, he said.

Unlike developed countries, China now requires more prudent macroeconomic policies, as the country has taken the lead in recovering from the global financial crisis, said Zhou.

To implement a prudential macroeconomic regulatory framework, China should work to enhance financial stability, which may require financial institutions to have stronger capital bases, he said.

Source: Xinhua
BRICS Leaders Meeting 2011
Japan in aftershocks
  Weekly review  
May 12   No winners in U.S. hi-tech export controls
May 12   China should view livelihood issues from strategic perspective
May 11   Syria will not be another Libya
May 06   Beijing-Shanghai high-speed railway to launch 10-day trial run
May 14   The week in pictures
May 11   2000-year-old wine unearthed in Henan province
May 11   Scientist: China plans to build lunar research base
May 09   Apple employee, customer reach settlement after Beijing iPad brawl
May 12   Wenchuan Reconstruction: 'Chinese miracle' impresses world
May 12   No winners in U.S. hi-tech export controls


  • Do you have anything to say?


Special Coverage
  • 3rd Anniversary Of Wenchuan Earthquake
  • Third China-U.S. Strategic and Economic Dialogue
Major headlines
Editor's Pick
  • World's major helicopter brands gather at Russian exhibition
  • Mildred Baena identified as mother of Arnold's love child
  • Artistic atmosphere in Cannes
  • Italian tries setting new Apnea diving record
  • 13 students contend in Ukrainian round of 4th 'Chinese Bridge' competition
  • Serbia urged to work harder toward meeting EU membership requirements
Hot Forum Dicussion