PBC Photo:Xinhua

 
China will keep the macro leverage stable and increase support for the real economy with a flexible monetary policy, in order to maintain adequate levels of liquidity as well as enhancing the stability of total credit growth, increasing the resilience of its economy, the People's Bank of China (PBC), the central bank, said.

In 2021, the country has effectively implemented macro policies including stable monetary input, which has supported the real economy and avoided financial risks, maintained a global leading position in economic development, the central bank stated.

The central bank pointed to the lending rates steadily decreasing, with the exchange rate of the Renminbi expected to remain stable, as the dividends of the reform on interest rate liberalization continue to be released.

Due to the complex and uncertain external environment, as well as shrinking demand, supply shocks, and weakening expectations around the world's economic prospects, the country should stabilize the economy and coordinate the convergence of macro polices both this year and into next year, in order to support high-quality economic development, the bank said.

According to the PBC, the monetary policy tools should support micro and small enterprises and individual entrepreneurs, and special refinancing loans will be launched to support efficient use of clean coal, and guide financial institutions to increase support for scientific and technological innovation.

And, the relevant authorities should safeguard the legitimate rights of home buyers, and better address reasonable housing demand across Chinese cities, in order to promote the healthy development and sustainability of the real estate market, the bank said.

The bank said that the country should set up an institutional mechanism for effective financial support to the real economy, to increase medium and long-term loans to the manufacturing sector, and improving green industry financing.

The PBC noted that the importance of strengthening coordination between financial and fiscal, industrial and regulatory policies, coordinating financial support for the real economy and financial risk prevention, in order to keep the Chinese economy running within an appropriate range and promoting high-quality economic development.