China's financial system will continue to implement prudent macro regulation and improve its ability to serve the real economy, according to a report from the State Council.

The report on financial work, delivered by Pan Gongsheng, the governor of the People's Bank of China (PBOC), was submitted on Saturday to lawmakers for deliberation at the ongoing session of the Standing Committee of the National People's Congress.

Since the fourth quarter of 2022,  China has precisely and effectively implemented a prudent monetary policy, provided stronger support for the real economy, and ensured the smooth operation of the financial market, said the report.

As the end of September 2023, the M2, a broad measure of money supply that covers cash in circulation and all deposits, climbed 10.3 percent year on year, while the growth of aggregate financing to the real economy increased by 9 percent year on year.

Data shows that the monetary policy provides strong support for economic recovery while maintaining price stability.

China will implement prudent macro-policy regulation in a "precise and forceful" manner, and will maintain appropriate supplies of currency and credit in a steady pace, according to the report.

Specifically, the report emphasized financial system's ability to serve the real economy.

By the end of September, the balance of medium and long-term loans that supported the manufacturing sector expanded by 38.2 percent year on year, while the balance of loans to small and medium-sized technology companies rose 22.6 percent year on year.

The financial system will strive to stimulate new growth drivers, provide stable financing support for consumer demand such as bulk and service consumption, and strengthen financial services for private enterprises, according to the report.

More efforts will be made to increase financial supply in key areas such as advanced manufacturing, strategic emerging industries, and science and technology enterprises, so as to accelerate the development of a modern industrial system.

The financial system will also back up infrastructure and the construction of major projects, and will prop up support for real estate firms to ensure the delivery of housing projects, it added.

(With input from Xinhua)