China vows to keep exchange rate stable

The meeting believed that in the first half of this year, the national economy maintained rapid growth and domestic demand kept improving. The central bank continued to pursue a sound monetary policy and, while taking solid measures to guard against and neutralize financial risks, intensified its support for economic development. As at the end of June, the balance of broad money was 17 trillion yuan, up 14.7 per cent; the balance of foreign currency lending of Chinese-funded financial institutions was 12.8 trillion yuan, which represented an increase of 870.1bn yuan, this increase being 186.2bn yuan more than registered at the same point last year. Overall, finance ran smoothly nationwide in the first half of this year and the growth of monetary credit basically matched the economic development.

The meeting proposed that in the second half of this year, it is necessary to keep a close watch on any new changes in the world economic and financial situation; continue to pursue a sound monetary policy; employ a variety of monetary policy instruments to regulate the money supply to an appropriate extent; focus on optimising the structure of lending; and promote the sustained, fast, and healthy development of the national economy.

The meeting emphasized that commercial banks should further change their operational mechanism; enhance their awareness of credit marketing; energetically support the demand for reasonable circulating funds and technological upgrading projects among enterprises that have a ready market, efficiency, and credibility; and strive to improve the financial services delivered to small and medium-sized enterprises.

Meanwhile, it is necessary to gradually expand the avenues of direct financing and raise the ratio of direct financing, make further improvements to the structure of corporate financing, and enhance the financing capabilities of small and medium-sized enterprises.