CHINA will continue to implement a prudent monetary policy and at the same time guard against financial risks, the central bank governor reiterated yesterday.
“We should continuously improve the monetary macro-control framework, carry out prudent monetary policy and promote sustained and healthy economic growth,” Zhou Xiaochuan, governor of the People’s Bank of China, said at a seminar.
Meanwhile, he urged the PBOC to “hold fast to the bottom line that no systemic or regional financial risks should occur.”
His remarks came as China’s economy showed signs of stabilizing while the country’s stock market spiraled downward.
The manufacturing Purchasing Managers’ Index, a key measure of factory activity in China, posted 50.2 in June, flat from May and in growth territory for a fourth straight month, according to official data published on Wednesday.
Meanwhile, HSBC’s version of manufacturing PMI, which is more focused on small and medium-sized firms, posted 49.4 in June, up from 49.2 in May.
The PBOC has cut interest rates four times since November to bolster the real economy, with the latest round announced over the weekend.
Despite liquidity-easing measures, China’s stock market has tumbled in the past few weeks, with the Shanghai Composite Index plunging 24.29 percent from June 15 to yesterday.