China's central bank to step up prudent monetary policy

BEIJING -- China's central bank on Wednesday pledged to intensify the implementation of prudent monetary policy and give full play to the functions of monetary policy tools.

The central bank will not engage in "flood irrigation" or excessive money supply, so as to provide stronger and higher-quality support for the real economy, the People's Bank of China said in its second-quarter monetary policy report.

More efforts will be made to maintain reasonably adequate liquidity, increase credit supply for enterprises, make good use of financial instruments, focus on supporting infrastructure development, and ensure the money supply and social financing will grow at a reasonable rate to achieve the best possible economic performance.

The central bank will also promote China's financial reform and opening-up, further simplify the procedures for foreign investors to enter the Chinese market, enrich investable asset classes, improve data disclosure, and continue to perfect the business environment.

On the back of timely policy moves and coordination, China's gross domestic product secured a positive growth of 2.5 percent year-on-year in the first half of 2022.