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MONETARY POLICY23 Jan. 2015The impact from ECB’s QE on Chinese economy and financeThe advantages from the QE thistime outweigh the disadvantages for Chinese economy.1.The QE will push up the dollar. The depreciation pressure on exchange rate of RMB to dollar will increase.2. The increase in global liquidity will drive more arbitrage capital to America and China, since China still has relatively high interest rate and growth speed.3. This will harm the Chinese exportation, but in a long run, it will help the exportation if the QE can help to recover the economy of eurozone.4. It will release the concern of loose monetary policy for Chinese government.5. It will weaken euro as the second international currency, which will help to establish more acceptance and approval for RMB.The influence on Chinese banking:1. Chinese banks might change their strategies on their branches in Europe.2. The appreciation of RMB for the last few years has given banks a big pressure on the dollar loan to deposit ratio, QE from ECB would confirm the strong dollar trend, which will release some of the pressure on the dollar loan to deposit ratio.3. Since QE will increase the volatility of international commodity price and exchange rate market, the investment from banks for their clients will be affected.?Fu Bing tao (付兵涛), senior researcher at the banking industry/archives/81522Comment: The loose monetary has showed a very limited help on Chinese economy, Chinese government should pay more attention on improving the environment of the real economy.XuNuoTags. Monetary policy, RMB convertibility and internationalization, banking.22 Jan. 2015Draghi’s bold promise to do what it takes for as long as it takesMario Draghi, president of the European Central Bank. He is seeking to lead the eurozone to monetary water.So the ECB has decided to purchase €60bn of assets a month until at least September 2016. Above all, the purchases will continue until the bank sees a “sustained adjustment” in the path o