On May 9th, the People's Daily published an interview with an authoritative person which discussed at length the views of the high-level authority on the current economic situation and introduced the future policy direction in the running of the economy as well as responded to the doubts expressed by the public on China’s economic policy.

ANBOUND’s research team is of the view that this interview was staged by the central government with the aim to convey the important message that the central government is determined to shift the focus of their works to structural reform and there will no more stimulus in the short term and China should completely abandon the illusion of reducing leverage by loosing monetary conditions to help accelerate economic growth.

The short-term pain will not deter China from continuing structural adjustment, so long as the employment remain stable, the government will continue to intensify the effort on structural adjustment.