IMF says 'Increased cybersecurity risks pose challenges for financial institutions, financial infrastructure, and supervisors.' Photo: Reuters/Kim Kyung-Hoon

The IMF released their summary of the 2017 Article IV Consultation with China on Tuesday, broadly commending authorities’ progress rebalancing the economy, noting that economic activity has firmed, opening a window to accelerate reforms.

Key recommendations:

  • Reduce national savings to prevent domestic and internal imbalances; China needs greater social spending, more progressive tax system
  • State-owned enterprises need further reforms, including hardening budget constraints, accelerating restructuring of debt, allowing exit of non-viable firms
  • Gradual tightening of monetary policy should core inflation continue upward trend
  • Continued progress toward greater exchange rate flexibility of the yuan

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