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President Xi Jinping's speech has sparked speculation about the People's Bank of China potentially buying government bonds to support the economy, with analysts leaning towards conventional tools over quantitative easing. The emphasis on gradually increasing trading of treasury bonds has led to positive market reactions.
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How could an increase in trading of treasury bonds affect international investors' perceptions of the Chinese economy?
How might the use of government bond purchases impact China's overall economic stability?
What other conventional tools could the PBOC employ to manage liquidity effectively?
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