China's monetary stance in 2013 will be neutral
Updated: 2013-01-28 16:08
By WANG XIAOTIAN (chinadaily.com.cn)
China's monetary stance in 2013 will be "neutral" to reduce financing costs among companies and stabilize money supply, said the State Information Center in an article published on the China Securities Journal on Monday.
Authorities will also extend regulation to shadow-banking activities to fend off systemic risks, it said.
"This year, the government will maintain the necessary increase of money supply and market liquidity through yuan holdings for purchasing foreign exchange, central bank bills and open market operations," it said, adding that the proportion of direct financing to the total social financing will rose continuously.
The country will also keep the exchange rate of the yuan, its national currency, relatively stable against the US dollar amid the backdrop of a new round of quantitative easing policies worldwide, according to the article.
The regulators will also keep a closer eye on the shadow-banking system and attach more emphasis on operational risks among financial institutions, to prevent that risks in one financial system spill over to another system, it said.