China to continue prudent monetary policy: central bank

BEIJING -- The People's Bank of China (PBOC), the central bank, said Saturday it will continue its prudent monetary policy while striking a balance between tight and loose.

The PBOC will maintain its "policy continuity and stability," make policies more forward-looking, carry out policy fine-tuning in a timely and appropriate manner, adapt its aggregate demand management to supply-side structural reform, the bank said in its monetary policy report for the fourth quarter.

The PBOC will use a string of monetary policy tools, including liquidity and price management, to create a financial environment conducive to Chinese economy's restructuring and upgrading.

China will optimize financing and credit structures to help foster new growth momentum as well as lay more stress on reform and innovation to strengthen markets' "decisive" role in resource allocation.

The policy report also vowed to improve efficiency of financial operations to better serve real economy, while guarding against financial risks.