Only propelled by new market factors can the floating band be enlarged.
Such a combination of steps will help relieve pressure from a rebound in investment, increase the sensitivity of the central bank's (monetary) adjustments and reduce the banks' interest income losses.
We cannot underestimate the possible loss to the reserves if, in the long run, the United States adopts a weak-dollar policy and we are still maintaining a high level of dollar reserves.
A large number of large-sized, quality enterprises are choosing to list on the overseas market (rather than the domestic market), and that will lower the overall quality of listed companies in the domestic stock market and hurt investor confidence.
How to effectively ease the upward pressure is vital for the yuan exchange rate reforms and also vital in resolving the problem of the runaway growth in foreign exchange reserves.
