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China to continue prudent monetary policy: Premier

Updated: Sep 10,2014 10:04 AM     Xinhua

TIANJIN — China will continue prudent monetary policy and “targeted control measures”, Premier Li Keqiang said on Sept 9.

China resorted to “strong reform”, instead of “strong stimulus,” last year to stimulate the economy, he said, speaking to entrepreneurs ahead of the Summer Davos in north China’s Tianjin Municipality.

This can be illustrated by the 13.6-percent growth of the broad money supply (M2) last year, the premier said.

While keeping the total amount of money at a stable level, decision-makers will be focused on restructuring money supply, which means the government will put more money into agriculture, small and micro businesses, emerging industries and the high-tech sector, Li said.

“As we are restructuring instead of expanding the monetary supply, current monetary policy is sustainable,” the premier added.

Li also stressed the importance of easing access to financial markets, and developing small, medium and private banks.

Reforms of interest and exchange rates, a multi-layer capital market and lowering leverage rates are important to controlling money supply, according to the premier.