ADB says China must tighten monetary policy

A senior Asian Development Bank official told Reuters in an interview on Tuesday 18 July that China needs to tighten its monetary policy to tackle an overheated economy and cut inefficient investment.

"We are concerned with the overheating of the Chinese economy," Masahiro Kawai, head of ADB's office of regional economic integration, told Reuters in an interview.

"Overheating can be corrected by appropriate monetary policy - higher interest rates in both lending and deposits, a further increas