<P><FONT size=5>星展银行—中国紧缩性货币政策将会加速</FONT></P>
<P><FONT size=5>01.30         3页            英文</FONT></P>
<P><FONT size=5>China: Monetary tightening to speed up</FONT></P>
<P><FONT size=5>DBS Group Research 30 January 2007</FONT></P>
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<P>Fast growth and excess liquidity remain key features of the Chinese economy. At the new year, the PBoC raised the<BR>required reserve ratio (RRR) again to 9.5% to mop up liquidity. On the currency front, the pace of CNY appreciation has sped up noticeably, touching a low of 7.7710 on Jan 25 – a rise of 0.5% in less than a month. But these “anticipated” tightening policies have not dampened the domestic A-share market nor the Hang Seng Index.</P>