Photo taken on Oct. 19, 2020 shows an exterior view of the People’s Bank of China in Beijing, capital of China. (Xinhua/Peng Ziyang)
BEIJING, Aug. 3 (Xinhua) — With consistent efforts to conduct prudent monetary policy, provide more financial support to the real economy and prevent financial risks, China’s central bank has effectively used its policy toolkit to support economic growth this year.
Going forward, the People’s Bank of China (PBOC), the central bank, will continue to maintain reasonable and sufficient liquidity, increase credit support for enterprises, and keep the economy functioning within an appropriate range. .
Here are some facts, figures, and metrics about the central bank’s focus areas.
PRUDENT MONETARY POLICY
The PBOC has stepped up its prudent monetary policy to stabilize economic fundamentals amid complex situations at home and abroad.
It lowered the reserve requirement ratio for financial institutions in April to support the development of the real economy and reduce overall financing costs.
Interest rates for seven-day reverse repos, medium-term loans, one-year loan prime rate (LPR) and over-five-year LPR were also lowered.
M2, a broad measure of money supply that covers cash in circulation and all deposits, rose 11.4 percent year on year to 258.15 trillion yuan (about $38.07 trillion) at the end of June.
FEEDING THE REAL ECONOMY
The central bank stressed the importance of providing financial support to the real economy.
A set of measures have been introduced to coordinate the COVID-19 response and economic and social development, and more inclusive lending has been provided to small and micro businesses, the PBOC said.
It has emphasized full utilization of carbon reduction support tools as well as its loan facilities for science and technology innovation, inclusive elderly care, transport and logistics.
In the second half of the year, the central bank will push financial institutions to lend more to the real economy, steadily cut real interest rates, and leverage financial tools to support infrastructure construction.
Preventing and defusing financial risks is high on the government’s agenda, and the country has managed to strike a balance between promoting financial development and controlling related risks.
The PBOC has supported localities and line departments in managing individual risk incidents and initiated the establishment of a fund to ensure financial stability.
Actions have been taken to meet people’s basic housing needs as well as their needs for better housing.
The disorderly expansion of large corporate platforms in the financial sector has been effectively curbed, according to the central bank.
In the second half of the year, the central bank will work to ensure stable financing channels for the real estate sector and accelerate the exploration of new development models in the sector.
He also urges companies on the platform to solve all the problems they encounter and make full use of their role in creating jobs and promoting consumption. ■