Goldman Sachs’s Song urges China to tighten monetary policy

Song Yu, chief China economist at Beijing Gao Hua Securities - Goldman Sachs joint-venture partner in China, wants the PBOC to tighten monetary policy.

Key Points via Bloomberg:

China should tighten monetary policy as signs of overheating emerge amid quickening inflation

Policy makers are torn between reining in price gains & stabilizing growth

But corporate lending has become too cheap ... The real interest rate for companies turned negative for the first time since 2011