Xi said that the real driver for price hikes is not stockpiles of money, but the growth rate of the money supply.
"As long as the central bank can keep the M2 growth rate under control, inflation will remain a healthy range," he said.
E Yongjian said the situation has remained optimistic thus far, considering the healthy 14-percent M2 growth target set by the government and the increasing role direct financing has been playing in China.
"Chinese have become increasingly sensitive to their assets. It's the government's duty to establish a proper mechanism to monitor and adjust market expectations," Lu said.
"Without stable market expectations, any asset allocation by individual investors will be futile," he said.
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