(Yicai) Aug. 4 -- The People’s Bank of China has reaffirmed that it will maintain a “moderately loose” monetary policy in the second half of this year, using a range of tools to ensure ample liquidity.

The PBOC’s mid-year work conference on Aug. 1 stated that the central bank will implement a detailed, appropriately loose monetary policy to further support technological innovation, boost consumption, bolster micro and small businesses, and stabilize foreign trade, according to a notice posted on its website.

The PBOC switched to a moderately accommodative stance this year from the “prudent” approach it had followed since late 2010.

To maintain ample liquidity and guide reasonable credit growth, the bank plans to deploy a range of monetary policy instruments. It will also ensure that the scale of social financing and money supply aligns with the country’s economic growth and inflation targets.

The bank also emphasized the need for smooth policy transmission and improved efficiency in fund utilization, and called for stronger enforcement and oversight of interest rate policies to help curb the risk of excessive volatility in the foreign exchange market.

To better support the real economy, the PBOC will make full use of its relending tools for sci-tech innovation and industrial upgrading, aiming to accelerate loan growth to tech-focused small and medium-sized enterprises. It will also strengthen funding support for key industries and ensure foreign trade firms’ access to financing. Oversight of electronic certificates of accounts receivable -- a common form of collateral for small businesses -- will also be tightened to mitigate financial risks.

Preventing systemic financial risks will remain a core focus for the PBOC this year. The bank will continue supporting local government financing vehicles in resolving debt and address risks in key regions and financial institutions to strengthen macroprudential management.

In addition, the bank plans to deepen financial reforms and market opening. This includes establishing a “technology board” for the bond market to allow venture capital and tech firms to sell more innovation bonds.

Furthermore, the PBOC will go on promoting yuan internationalization and expand the redback’s use in trade, thereby enhancing its role as a global funding currency. The PBOC will also pursue international financial cooperation, participate in global financial governance, push key legislative reforms, and further develop the digital yuan, it said.

Editor: Emmi Laine