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MNI BRIEF: PBOC To Maintain Ample Liquidity, Target Idle Funds

MNI (Singapore)
(MNI)Beijing

Chinese monetary policy will aim to maintain ample liquidity while putting idle funds to good use, and enhance the stability of capital markets, Premier Li Qiang said when releasing the government work report during the opening ceremony of National People’s Congress on Tuesday.

The central bank will improve the monetary policy transmission to “prevent funds from sitting idle or simply circulating within the financial sector,” and ensure a decline in overall financing costs and support key sectors and improve weak links, the report said. (See MNI: China To Pursue Moderate Policy Support In 2024)

The policy will maintain “prudence in a flexible, appropriate, targeted and effective way” and the aggregate financing and money supply will stay in step with the normal economic growth and CPI increase, the report stated, pointing out the yuan exchange rate will remain stable at an adaptive and balanced level.

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