Xi Jinping Directs China's Central Bank to Resume Bond Trading, But Quantitative Easing Not Yet on Table

• Xi Jinping instructed China's central bank to resume trading of government bonds to enrich monetary policy tools • Analysts say this doesn't necessarily mean China will launch quantitative easing or a major stimulus • The central bank is expected to take a cautious approach to avoid unintended consequences for inflation and currency • China is trying to balance supporting economic growth while preventing financial risk • The central bank still has room for normal monetary operations, so quantitative easing is not yet seen as applicable