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China to maintain prudent monetary policy

Updated: Aug 6,2016 4:01 PM     Xinhua

China will continue to adopt the prudent monetary policy in the second half of this year, while maintaining an appropriate degree of flexibility and making timely pre-emptive adjustments, the central bank said on Aug 5.

The People’s Bank of China (PBOC) will use various policy tools to maintain appropriate liquidity and reasonable growth in credit and social financing, according to a report posted on the PBOC’s website.

The central bank promised to improve financing and credit structures to support the country’s economic restructuring and upgrades.

More financial support should be given to major infrastructure projects and economic zones including the Yangtze River economic belt.

The bank will assist precision poverty relief, continue market-oriented reform on interest rates, and reduce social financing costs.

The central bank reaffirmed that it will keep the yuan exchange rate basically stable at a “reasonable and balanced” level, improve the exchange rate formation mechanism, and accelerate the development of foreign exchange market.

The bank will also improve financial market system, and do everything possible to prevent systematic risks and ensure a stable financial market.

To prevent hidden risks, more attention should be paid to industries beset with overcapacity, the property sector and local government debts, the central bank said.