(Yicai Global) July 25 -- China will implement a proactive fiscal policy and prudent monetary policy with supply-side structural reform as the main theme in the latter half of the year, said the Political Bureau of the Communist Party of China (CPC) Central Committee at its latest meeting. China should firmly avert any systemic financial risks, crack down on financial irregularities, strengthen coordination of financial regulation and improve the efficiency and quality of financial services in the real economy, it said.

The Politburo of the Communist Party of China held a meeting yesterday to review the current economic conditions and deploy economic work for the second half of this year, Xinhua News Agency reported. Xi Jinping, General Secretary of the Communist Party of China, presided over the meeting.

The Politburo of the CPC Central Committee called for stable progress in economic work for the second half of the year and a better grasp of the balance between stability and progress as well as timing and intensity of economic work.

China should keep policy consistent and stable, implement a proactive fiscal policy and prudent monetary policy, uphold supply-side structural reform, moderately expand aggregate demand, strengthen expectation guidance and promote innovation-driven growth to ensure that supply-side structural reform will be deepened and there will be no occurrence of systemic financial risks, it said.

China should continue to eliminate overcapacity, reduce inventory, deleverage, lower costs and improve weak areas, deal with zombie businesses and adopt more market mechanisms to eliminate weak players, it stressed. China should stabilize the property market, keep policy consistent and stable and set up long-acting mechanisms, the Politburo emphasized. It also called for actively and steadily resolving government debt risks, effectively regulating local government debt financing and resolutely curbing the increase in hidden debt.

The Politburo is the central leadership organ of the Communist Party of China. It exercises the powers of the party's central committee when the plenum of the central committee is not in session. Each central committee has a term of five years. It executes the decisions of the national party congress and leads and represents the party when the congress closes.