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Central Bank Governor: Continue with Prudent Monetary Policy

06-29 11:53 Caijing
Chinese central bank governor Zhou Xiaochuan pledged on Friday to continue with “prudent” monetary policies, while asking financial sector to “better serve real economies”.

Chinese central bank governor Zhou Xiaochuan pledged on Friday to continue with “prudent” monetary policies, while asking financial sector to “better serve real economies”.

The governor of the People’s Bank of China made the remarks at an annual economic forum in Lujiazui, Shanghai, which was scheduled during June 28-30. Zhou is co-chairing the forum with Mayor of Shanghai Han Zheng.

“With the help of capital and Internet, the importance and influence of finance in modern economic system have been greatly enhanced,” said Zhou, “Yet together with its quick development, there was a tendency for it to break away from the real economies, which eventually became one of the reasons to have triggered the global financial crisis.”

The government should “continue to implement a prudent monetary policy” and enact “preemptive fine tuning” at an appropriate time, he said.

He also urged for finance innovations, reforms of the interest rate, exchange rate and the cross-border trading of its currency, when explaining the theme of the forum.

The central bank will also participate with the construction of Shanghai’s financial center, as always, especially the effort to develop its capital market, according to Zhou.

Also at the forum, Guo Shuqing, Chairman of China Securities Regulatory Commission, expressed his confidence on China’s stock market.

“There is no reason why China’s capital market cannot become the world’s NO.1,” he said, admitting though it is not an easy task.

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