In this article entitled China: report on road to rebalancing, said Zhu Haibin, 3% 2013 Yuan rise against the dollar, up from earlier forecasts. Judging from the real effective exchange rate, the Yuan appreciation is much higher, cumulative 7.9%, the export industry is facing pressures reported that Yuan's strong performances, as well as the domestic and foreign market of spreads led to large capital inflows to China, should continue to appreciate modestly against the dollar, or should I switch to a basket-weighted system, are major challenges facing the Central Bank in 2014. As part of the financial reform, expects the dollar-renminbi trading range will be expanded from 1% to 2% during the day, and the Central Bank will reduce its intervention in foreign exchange markets Zhu Haibin believes that 2014 financial risk may further accumulate, partly because of high leverage will continue. Since 2008, credit growth significantly exceeding the nominal GDP growth rate, social total debt as percentage of GDP rose from 145% to 200% per cent in 2013, corporate debt is far higher than in other countries.

In on behalf of GDP growth declined, and actual interest rate high and, and shadow Bank system transparency lower, and its related financial products became more complex of situation Xia, regulatory institutions needs take strong initiatives against financial risk report is expected to, Bank will gradually exit credit loose of policy, despite credit growth will from 2013 fifa 14 coins of 17.8% dropped 2014 years of 16.2%, but China of total credit scale accounted for GDP of ratio in 2014 still will continues to growth 9%, This means in 2014-credit imbalance will continue. For example, the second half of 2013 inter-bank borrowing interest rate swings, and the recent rise in long-term bond yields, which are slowing in credit growth and to strengthen the regulation of shadow banking activities take place in a context. Expected in 2014, rising interbank market funding costs will partly go to marry as a lender, which will drag on economic growth. (End text)

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