In the past two years, a large amount of money has surged in China's monetary and financial markets, far exceeding the demand of the real economy, making a large amount of "spare money" enter the asset markets such as the stock market and the property market, which has spawned potential bubble risks. For the problem of excess liquidity in China, most scholars believe that so much liquidity comes from China's trillions of foreign exchange reserves, and foreign exchange accounts for a huge amount of the base currency. In recent years, China's balance of payments has been "double surplus", coupled with China's foreign exchange settlement and sale system, resulting in trillions of foreign exchange reserves. In order to hedge these foreign exchange, the central bank was forced to invest too much RMB, but it still could not absorb so much liquidity.

2. The main measures taken are: raising interest rate 1, raising the deposit reserve ratio (the most commonly used means recently), issuing central bank bills as the mainstay, supplemented by repurchase operations, and increasing hedging operations in the open market.

3。 The central bank can influence the credit expansion ability of financial institutions by adjusting the deposit reserve ratio and other commodities, thus indirectly regulating the money supply. Avoid economic overheating and reduce capital mobility.

4. Due to the weakening of the US dollar, the surge of crude oil and the influx of hot money, the regulation effect is not particularly good, so we will continue to implement a tight monetary policy.