MNI BRIEF: New Monetary Tools Needed For Key Areas: CFWC

Beijing will boost monetary toolkits in a bid to direct financial resources to needed areas, keeping a prudent stance while conducting “cross-cyclical” and “counter-cyclical” moves, a statement from the Central Financial Work Conference said Tuesday.

Chaired by President Xi Jinping, the twice-a decade closed-door conference stressed the monetary policy should enhance efforts via both broad and structural tools, maintain liquidity “reasonable and ample”, continue reduction of financing costs and keep capital markets active out of the purpose of expanding domestic demand, promoting foreign trade and foreign investment, and cultivating new economic drivers.

The financial sector should distribute more funds to technological innovation, advanced manufacturing, green development, and small and medium-sized enterprises, the statement said. Management on the foreign exchange market will be strengthened, while maintaining the yuan's exchange rate "stable at reasonable and balanced level,” the statement noted, adding that state-owned financial institutions will further be strenghtened.