Financial house

Published May 11, 2005

WASHINGTON, May 10: China must launch a financial-sector clear-out in step with relaxing its currency regime to keep its booming economy on track, two top International Monetary Fund officials said on Tuesday. In the absence of a more inventive banking industry or other outlets for China’s huge savings rate, massive investment is going into the wrong sectors, the officials warned in a commentary in the Financial Times.—AFP