(Yicai Global) Dec. 22 -- The People’s Bank of China will maintain the Chinese yuan exchange rate at a reasonable and balanced level and use a variety of monetary policy tools to ensure sufficient liquidity in the financial system, the central bank said yesterday.

The PBOC will keep monetary policy prudent, give play to the role of the market-based adjustment of deposit interest rates, and help reduce and stabilize borrowing costs, the central bank said at a meeting yesterday.

The PBOC will make full use of monetary and credit policy tools to boost demand and support the construction of key infrastructure and major projects in line with the national development plan, it said. It will guide banks to improve financial services, increase support for private micro and small businesses as well as provide more bond financing tools for private enterprises to satisfy their reasonable financing needs.

The central bank will continue to promote the high-level opening up of the bond market, make it easier for foreign institutional investors to invest in the Chinese bond market, enhance the liberalization of cross-border trade and investment, and expand the scope of high-quality enterprises in foreign exchange revenue and payment policies, it said.

The PBOC will implement differentiated housing credit policies according to the real situation in cities to meet the reasonable financing needs of the sector. It will support rigid and improved housing demand, promote the development of the long-term rental real estate market, and accelerate the exploration of new property development models that attach equal importance to leasing and purchases.

The central bank will encourage banks to support the restructuring of the real estate industry, promote the prevention and resolution of risks of leading real estate firms and improve their asset-debt ratios.

It is necessary to enhance financial supervision of internet-based firms and guide the healthy development of their financial business standards, it said.

Editor: Kim Taylor