The mainland's central bank said yesterday that it would strengthen monetary policy fine-tuning in the second half of the year to improve credit quality and economic development in the run-up to the 18th National People's Congress.
The comments follow a Politburo meeting led by President Hu Jintao that aimed to promote economic stability and growth ahead of a political transition.
The People's Bank of China (PBOC) said it would expand the use of yuan in cross-border settlements, promote the interbank bond market, continue financial market reform and steadily push forward the opening up of the country's capital accounts.
The mainland's real gross domestic product growth fell 50 basis points quarter on quarter to 7.6 per cent in the second quarter.
The weakening economy is also starting to hurt the job market, a shift reflected in the employment subindex of the official purchasing managers' index, which contracted for a second month.
'In the second half, we must continue to reinforce fine-tuning and pre-emptive adjustment in monetary policy and improve credit policy to support the development of the real economy,' the PBOC said on its website.
Beijing has pledged to make growth and employment its top priorities for the second half of this year. It has separately cut interest rates and reserve requirement ratios twice this year. The central bank will also strengthen supervision of the financial sector to prevent systemic risks in the industry.