China's central bank pledges precise, solid implementation of prudent monetary policy

The People's Bank of China (PBOC), the central bank, on Wednesday pledged to implement the prudent monetary policy in a precise and solid manner.

The PBOC said it will work to keep liquidity within the financial system reasonably ample with multiple monetary policy tools such as open market operations.

The PBOC said it will enhance the implementation of the prudent monetary policy and keep the growth in M2 -- a broad measure of money supply that covers cash in circulation and all deposits -- as well as that of social financing generally in step with nominal economic growth.

The central bank will increase support for sectors such as consumption, construction of key infrastructure and other major projects, as well as private small and micro enterprises.

To ensure stable and sound financial operation, the PBOC said it will focus on mitigating risks concerning the real-estate sector, platform enterprises, as well as key enterprises and medium and small financial institutions.

The central bank also stressed giving full play to the roles of policy tools and encouraging financial institutions to increase lending, therefore supporting the stabilizing of growth, employment and prices, and keeping the economy performing within a reasonable range.