China to maintain reasonable growth in financing

The People's Bank of China (PBOC), the central bank, pledged to maintain reasonable growth in financing and money supply to bolster economic stability, according to a statement released after its quarterly monetary policy meeting on Friday.

The central bank acknowledged persistent challenges facing China's economy, including heightened external shocks, weak global growth momentum, rising trade protectionism, and ongoing geopolitical tensions.

While emphasizing the need to further consolidate the foundation for sustained economic recovery, the PBOC reiterated confidence in China's long-term growth prospects, citing the country's vast market scale, comprehensive industrial system, and abundant talent pool as key strengths. It urged continued focus on high-quality development to navigate external uncertainties.  

The PBOC vowed to balance short-term and long-term objectives, stabilize growth while preventing risks, and harmonize domestic priorities with external equilibrium. It pledged to enhance the foresight, precision, and effectiveness of macroeconomic policies, expand domestic demand, stabilize market expectations, and invigorate economic activity to reinforce the fundamentals of growth and social stability. The central bank is committed to implementing an appropriately accommodative monetary policy and intensifying counter-cyclical adjustments to foster a favorable monetary and financial environment for recovery, said the statement.

The efforts to refine the interest rate regulatory framework and reduce banks' liability costs are aimed at lowering overall financing costs across the economy. Additionally, the PBOC emphasized leveraging monetary tools to direct financial institutions toward supporting critical sectors, including technology innovation, green initiatives, small and micro businesses, consumption expansion, and trade stability. These measures underscore China's dual focus on stabilizing financial conditions and addressing structural challenges amid a complex global landscape.