China should be cautious in introducing new tightening measures due to uncertainties in the global and domestic economies continue to face uncertainties, Reuters reported, citing an official from the National Development and Reform Commission. Xu Lianzhong, who heads the state planner’s price monitoring center, said a speedy exit from loose economic policies could prove detrimental given risks from the spreading European debt crisis. "The drastic changes in economic policies will have a negative impact on the sustainable performance of the economy," Xu said in an article published by state media. "The market is quite sensitive about policy adjustments, especially when the European debt crisis is spreading." China has already introduced some tightening measures aimed at cooling the bubbling property market as residential price growth hit record highs in March and April.
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