China to focus on reforms, opening of capital market

The headquarters of the People's Bank of China in Beijing. [Photo provided to China Daily]

China will continue to implement prudent monetary policy and focus on "mild adjustment and fine-tuning" to ensure the monetary policy is effective to support the country's economic growth, the People's Bank of China said on Friday.

Monetary supply was kept at an appropriate level, which was neither too loose nor tight last year and China will continue to push market-driven financial reforms and to further open the capital market to better serve the economy and to mitigate possible financial risks, the central bank said in a press statement.

The country also saw fast growth in the cross-border trading of the yuan. Total yuan-denominated trade, investment and financing reached 9.95 trillion yuan, accounting for about 20 percent of the country's total cross-border settlement, according to the document.

Meanwhile, the central bank said it has completed the preparation for the launch of the deposit insurance, a major step toward a more market-driven financial market in China.

Last year, the PBOC pushed the reforms in interests and exchange rates with wider floating bands. The country also further opened its capital account by launching the Shanghai-Hong Kong Stock Connect.

The central bank also carried out a series of measures to lower financing cost for companies, especially private and small and medium-sized enterprise.