China's "prudent" monetary policy.......>

CHINA PRESS: China's "prudent" monetary policy means neither too tight nor too

loose, so the People's Bank of China will adjust the strength and pace of the

policy according to situational changes and properly conduct "pre-tuning" and

"fine-tuning," Zhang Xiaohui, assistant governor of the PBOC, said in a

commentary Monday in China Finance, a magazine run by the PBOC. An overly tight

monetary policy would worsen the distortion of China's economic structure and

cause the rapid rise of goods and asset prices, while too loose a policy would

put downward pressure on the economy, Zhang said. China will further balance the

flexibility and stability of the yuan exchange rate and improve two-way

fluctuations of the yuan based on the market-oriented supply and demand

relationship, Zhang said. China will also maintain the stability of the yuan

exchange rate within the global monetary system, he said. (China Finance)