China to Continue Supportive Monetary Policy

BEIJING (Reuters) – China will continue to implement a supportive monetary policy to help promote sustained economic recovery, said Pan Gongsheng, governor of the People's Bank of China, in remarks published on Thursday.

China plans to promote the opening of its financial services sector and strengthen communication with markets. Pan made these statements during a meeting with executives from foreign financial institutions, according to a central bank statement.

The central bank aims to maintain a dynamic balance between economic growth and quality, as well as between internal and external factors, investment, and consumption while continuing to implement supportive monetary policies.

Since late September, the central bank has increased policy stimulus measures, including cutting interest rates and providing cash injections, in efforts to rejuvenate the world's second-largest economy and meet a government growth target of approximately 5% this year.

Investors are closely monitoring an upcoming meeting of the country’s top legislative body for indications about the scale or timing of fiscal measures, particularly after Finance Minister Lan Foan mentioned last month that China would "significantly increase" government debt and support both consumers and the property sector.

Executives from leading banks such as HSBC, Standard Chartered, Citibank, DBS Bank, Mizuho Bank, JPMorgan Chase, Societe Generale, Deutsche Bank, and Morgan Stanley attended the meeting, as reported by the central bank.