If the leverage ratio is rather high, or bubbles emerge in asset prices, the best strategy is “slow air-bleed” and “soft landing” so as to make smooth adjustments to the economy. When the market or economy is impacted by external shocks, we should take prompt measures to stabilize the financial market and, in particular, to bolster market confidence.
This is a fairly good regulation and control strategy. In the next phase, the monetary policy is going to push forward with its continuous support for the real economy. Just now I talked about two subjects: the framework of our monetary policy and how the monetary policy and finance support the real economy, in particular, how they support SMBs as well as private enterprises.