In the meantime, a broader set of other recent reforms represent further incremental steps towards greater financial market liberalisation: the removal of restrictions on most lending rates and some liabilities, with those on deposit rates expected to follow; the recent widening 2  BIS central bankers’ speeches  of the renminbi’s trading band, as part of the central bank’s commitment to let markets play a greater role in the economy; and the introduction of the Shanghai Free Trade Zone with some associated easing of capital account restrictions.
These are all welcome moves and are in China’s long-run interests. Around the Asian region generally, at this stage, our sense is that economic growth is continuing at about its trend pace. All countries will be watching closely both developments in China and the impacts on capital flows and risk-pricing as the Fed tapers and other major central banks implement their own chosen policies.