People's Bank of China Monetary Policy Committee recently held a regular meeting on the second quarter of 2009. The conference studies the orientation of monetary policy and measures for the coming future, concluding that we need to implement moderately easy monetary policy and maintain the continuity and stability of policies to guide a reasonable growth in monetary credit.

It is learned that in the first five months, RMB loans increased by 5.84 trillion yuan. June figures have not yet been released, but according to past experience, new credit in the first half of 2009 will definitely surpass 6 trillion yuan, and some experts even predict the figure to be up to 6.5 trillion yuan. This means that total credit in the first half of this year will be more than the total amount invested in any year since China was founded.

The conference suggests that in future China needs to further rationalize the monetary policy transmission mechanism and optimize credit structure, increase the financial support for weak links such as small and medium-sized enterprises.

China will also need to make efforts to develop consumer credit, to support independent innovation, mergers, reorganization, restructure of industry and coordinate regional economic development.

Attention will be paid to strict control of loans to high energy consumption and high polluting enterprises as well as those with excess industry capacity. China will continue to push forward financial reform and innovation, strengthen risk management, and enhance enterprises' ability to guard against financial risks.

The meeting analyzed the current economic and financial situation both at home and abroad.

China's economic performance is at a crucial period for recovery and has stabilized. With a series of measures to expand domestic demand and promote economic growth policies, the current economy shows positive changes. The overall situation has stabilized.

However, the foundation of the economic recovery is still not solid enough, especially as the trend of international economy is uncertain, external demand is declining, the external environment of China's economic development is still very serious.

People's Bank of China works in accordance with the unified arrangements of the State Council to implement moderately easy monetary policy, strengthen financial support for economic growth, maintain ample liquidity of the banking system, keep the rapid growth of monetary credit and make the financial system run smoothly.

By People's Daily Online

http://paper.people.com.cn/rmrb/html/2009-06/26/content_282793.htm