China - PBOC promises sound financial environment
Thursday, 12 24 2020, Category: Economy, Country: China
China will maintain a prudent monetary policy, which is flexible, precise, reasonable and moderate next year, while providing financial support in key areas and preventing financial risks, according to the People's Bank of China, the central bank.
The country will also improve the mechanism for regulating the money supply and keep the macro leverage ratio basically stable, while properly handling the relationship between economic recovery and risk prevention, the PBOC said.
The central bank statement follows a meeting held on Friday, after the conclusion of the annual Central Economic Work Conference, which outlined the key priorities for next year.
China will deepen the market-oriented reform of interest and exchange rate regimes, and keep the yuan exchange rate generally stable on a reasonable and balanced level, the central bank said.
Financial support for key areas, especially for small and micro enterprises and private businesses, will continue, it said. Policy tools like relending and rediscounting will be used to help financial institutions increase lending for technology innovation, green development and manufacturing.
The PBOC also reiterated its intent to prevent and defuse financial risks, especially for small and medium-sized banks. The macro-prudential policy framework needs to be improved further, while financial technology companies should start following the regulations for the financial sector, it said. "We must firmly oppose monopoly and unfair competition and prevent any disorderly expansion of capital."