The People's Bank of China, Beijing, China, August 3, 2020. /VCG
More effective policies will be implemented to assist enterprises to tide over difficulties and ensure employment in the second half, China's central bank said on Monday.
Noting that its policies in the first half of the year facilitated a speedy recovery of the national economy amid COVID-19, the People's Bank of China (PBOC) will pursue a more flexible and appropriate monetary policy, making it more targeted, and effectively implement policies aimed at helping enterprises tide over difficulties and ensuring employment in the second half, the PBOC said in a video conference on its work in the second half of 2020.
The central bank also pledged to use a variety of monetary-policy tools to enable M2 money supply and aggregate financing to grow at notably higher rates than last year, while promoting substantial growth in the inclusive loans to small and micro businesses and medium- and long-term loans to the manufacturing industry.
Efforts will be made to leverage a 1 trillion yuan (143 billion US dollars) re-lending and rediscount quota and the policy instruments introduced in June to directly channel funds into the real economy and extend support to as many virus-hit micro and small companies as possible, the PBOC said.
It will promote full implementation of the foreign investment administration model of pre-establishment national treatment plus a negative list, advance the internationalization of the renminbi and capital account convertibility in a proactive and sound manner, and unify the foreign exchange management policies applied in the opening-up of China's bond market.
Meanwhile, it will be deeply involved in global financial governance and safeguard multilateralism.
The central bank vows to adhere to the principle of marketization, valuing commercial banks' right to independent operations, enhancing support for small and medium banks to issue capital replenishment bonds.
It also said it will advance the research and development of legal digital currency in a proactive and sound manner.