(THIS ARTICLE IS COURTESY OF THE SHANGHAI CHINA NEWS AGENCY ‘SHINE’)
China to continue implementing prudent monetary policy in H2: PBOC
China’s central bank said Friday that the country will keep its prudent monetary policy “neither too tight nor too loose” and make adjustments in a timely and moderate manner in the second half of the year.
The People’s Bank of China will use a variety of monetary policy tools and adopt counter-cyclical adjustments to keep the liquidity at a reasonable and ample level, it said in a national video and telephone conference.
The growth pace of M2, a broad measure of money supply that covers cash in circulation and all deposits, as well as that of social financing scale, should be commensurate with the growth in nominal GDP, said the bank.
Meanwhile, the meeting called for improving the transmission mechanism of monetary policy to the real economy and to further stimulate the vitality of the micro-enterprises in the market.
In terms of preventing and defusing major financial risks, the bank stressed to forestall systematic financial risks and protect the legitimate rights and interests of the public.
The bank also vowed to strengthen supervision and control of funds in the real estate market and adhere to the principle of “houses are for living in, not for speculation.”
In H2, the bank said it would continue to expand market access, promote greater cross-border use of Chinese yuan, speed up the development of China’s legal digital currency (DC/EP) and intensify curbing risks of Internet financing.