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China Able to Reach Year's Financial Control Target
Officials and experts from China's financial circles agree that China will be able to hit its financial control target for this year.
According to the quarterly meeting of the Currency Policy Committee of the People's Bank of China held this week, the present economic recovery is mainly attributable to the implementation of the macro-economic control policies, including proactive fiscal policies and steady monetary policies.
Participants at the meeting concluded that China's financial industry is operating quite smoothly. In the first eight months of this year, the amount of broad money (M2) increased 13.3 percent; that of narrow money (M1) increased 21.9 percent; and loans by financial institutions increased 810.6 billion yuan, up 239.3 billion yuan from the same period last year.
Predictions were made of this year's financial situation and major financial indices, according to which broad money (M2) will increase 13 to 14 percent; narrow money (M1) will increase about 20 percent; money in circulation (M0) will be controlled under 150 billion yuan; and loans by financial institutions will increase 1.3 trillion yuan, at least 200 billion yuan more than last year.
The committee suggested that the implementation of steady monetary policies should be continued to further consolidate the healthy development of the national economy.
It held that efforts should be made to accelerate innovations to the financial system and further develop the financial market. The market-oriented reform on interest rates should be steadily promoted to give full play to the role of interest rate in rational resource allocation and supporting reforms of commercial banks.
Furthermore, balanced international payments and a steady exchange rate for the local currency, the Renminbi, must be maintained.
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