(Yicai Global) Nov. 29 -- China still faces many uncertainties in the next stage of economic development and the country will continue to implement a prudent monetary policy, the director of the People’s Bank of China’s research bureau said at a recent event.

Monetary and financial policies play a positive role in supporting economic recovery after the Covid-19 pandemic and promoting common prosperity, Wang Xin said on Nov. 27. The central bank must ensure sufficient liquidity, make good use of structural monetary policy and protect employment and people’s livelihoods more effectively.

The central bank shall also promptly replenish bank capital by issuing special local bonds, or other forms of leverage, to create a good liquidity environment for bond issuance, Wang said. It shall promote the reform of rural credit cooperatives and increase the disposal of non-performing assets to dissolve the risks of problematic small and medium-sized financial institutions.

The central bank will continue to improve the green financial system, better mobilize social funds to invest in the low-carbon transformation of green industries and traditional high-carbon industries and create more job opportunities, he said.

In addition, the central bank shall actively develop green financial products including green municipal bonds, support investing pensions into capital markets to prevent risk and facilitate financial investment for ordinary people to increase income.

The monetary policy introduced to ‘stabilize enterprises and ensure employment’ during the Covid-19 pandemic places more attention on jobs, supports the employment absorption capacity of SMEs and private companies and guarantees stable and sustainable income for low-income groups, he said.

Editor: Kim Taylor