Opinion: An Uncommon Policy Mix Could Benefit Creditworthy Firms

During the cyclical economic slowdown from the first quarter of 2018 to the end of this year’s first quarter, China adopted the common combination of a loose monetary policy and a proactive fiscal policy.

However, since policymakers in April described economic conditions in the first quarter as “better than expected,” monetary policy has returned to neutrality and lending rates in the interbank market have risen slightly.