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.
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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.
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
