China to foster sound monetary, financial environment: central bank

(Xinhua) 09:39, November 05, 2023

BEIJING, Nov. 3 (Xinhua) -- China's central bank on Friday said that it will further implement financial macro control and maintain its prudent monetary policy to foster a sound monetary and financial environment.

More efforts will be made to enhance cross-cycle and counter-cyclical adjustment, enrich the monetary policy toolbox, optimize the capital supply structure, and dredge the channels for funds to enter the real economy, said the People's Bank of China.

The bank has been implementing a prudent monetary policy with multiple measures, including the reserve requirement ratio cuts in March and September. The issuance of medium-term lending facility topped its maturity on a monthly basis, maintaining double-digit loan growth from last year's high bases.

Both the M2, a broad measure of money supply that covers cash in circulation and all deposits, and social financing climbed about 10 percent year on year at the end of September, which was in line with and slightly higher than nominal economic growth, the bank's data showed.

The bank said it will maintain reasonable, steady and efficient growth in monetary credit and total financing, while guiding more financial resources to be used in sci-tech innovation, advanced manufacturing, green development, micro, small and medium-sized enterprises, and major national strategies.

Coordination between monetary, fiscal, industrial and regulatory policies will be strengthened to jointly maintain overall economic and financial stability, the central bank said.

(Web editor: Tian Yi, Kou Jie)


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