PBOC maintains prudent monetary policy

The People's Bank of China (PBOC), the central bank, reported on Tuesday that monetary policy will remain prudent.

The report pointed out the importance of stable monetary and financial circumstances to reform. Use of different monetary instruments will build mature, prudent macro policy where liquidity and social financing are effective, the PBOC said. China will manage and adjust the liquidity of the banking system, and strengthen communication between the market and public, while guiding commercial banks towards better management of assets, liabilities and risk.

Monetary policy will integrate resources, helping small and micro businesses and enhancing credit support for rural development.

Job opportunities, poverty relief, education and housing prices also need financial policy support, as well as mitigating over-production capacity.