Subject: Looking For the Reasons of China Liquidity Surplus

Speech Subjects:

Ma Xiaohe	The essential method of solving China liquidity surplus is to adjust the mode of production.
Zhong Wei	Judging from the short term, liquidity surplus isn’t a serious problem.
Li Xiaoxi	The essence of liquidity surplus in China and foreign countries is different. The main point of solving the Chinese problem is to change the systems.
Mei Xinyu	To solve the problem of liquidity surplus, international policies should be coordinated.
Sheng Hong	The strategy of overtaking results in the liquidity surplus, the method of solving it is mainly in the market construction.

Online Questions:

• What is the reason of producing the problem of liquidity surplus? How about the measures?

  Just now Mr. Mei talked about the domestic liquidity surplus, and there also exists the global liquidity surplus. I want to ask how the global liquidity surplus came into being? What is its criterion? What is the degree? For the global liquidity surplus, what measures do we should take? Because it relates to our domestic liquidity surplus, and it can influence our domestic liquidity surplus.

• About the cost of hedge liquidity of central bank

  I want to ask a technical question. You just now talked about the hedge liquidity, central bank can issue central bank bill to absorb it, but the central bank does not want to do in this way, because it needs to bear more cost. I want to ask: from which part does the central bank consider its cost? Because it is not an enterprise, if it has more cost, it will be shown in its balance sheet. Considering from the steady of China’s economy, it can be understood.

• Risks of liquidity surplus and venture in stock market

  You just now said that the stock market will have the price earning ratio of 50 times. Now the price of stock is rising everyday, almost all the people talk the stock, almost all the people buy stock, many people at work do not want to work, they think how to buy the stock. Is it a venture risk or investment risk? How much is the risk?

• About the possibility of the increase of interest

  Now we care the possibility of the increase of interest, I want to know Mr. Zhong Wei’s idea