Liquidity to be kept at reasonable level, says PBOC

Monetary authorities in China would use conventional policy tools to support the corporate sector and avoid the side-effects of the aggressive financial stimulus measures implemented to cushion the effect of the novel coronavirus pandemic.

Speaking at the 12th Lujiazui Forum in Shanghai, Yi Gang, governor of the People's Bank of China, the central bank, said that China will maintain liquidity at a reasonably ample level in the second half of this year and further reduce the market interest rates to spur credit for businesses.

"But we need to pay attention to the side effects of financial policies and prevent any effect from the COVID-19 pandemic," he said. "The total financial support measures should be appropriate, but it is also necessary to consider in advance a good timing for an exit of the policy tools."