MNI POLICY:PBOC Improving Real Econ Transmission: Dep Gov Chen

     BEIJING (MNI) - The People's Bank of China has been working to boost its

monetary policy tools and improve policy transmission in a bid to the balance

the goals of macro-control and support the real economy, Chen Yulu, PBOC deputy

governor told a forum hosted by the ASEAN+3 Macroeconomic Research Office

Friday. 

     Here are main points of his speech:

     --The PBOC will continue to work to cope financial risks, with the firm

goal of preventing systemic risks. The PBOC will set up a dual-pillar framework

consisting of monetary policy and macro prudential policy to smooth economic

fluctuations and conduct counter-cyclical adjustments.

     --Measures have been taken to further open up China's financial sector and

lift restrictions on market access for foreign institutions. China also

shoulders responsibility for maintaining regional financial stability, whilst

promote the facilitation of regional trade and investment.

     --Market-oriented interest rate reform is largely complete and the

marketization of the yuan exchange rate formation mechanism has been improved,

while the flexibility of the yuan exchange rate has significantly strengthened.

     --There is attention to financial inclusiveness, particularly support for

small businesses, the private sector and key sectors that involve agriculture,

poverty relief and social welfare. The PBOC has implemented an incentive

mechanism to increase the coverage, facilitation and financial services

viability.

--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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