© Reuters. FILE PHOTO: People wearing face masks walk past the headquarters of the People’s Bank of China (PBOC) of the Chinese central bank, April 4, 2020. REUTERS / Tingshu Wang
BEIJING (Reuters) – China will maintain prudent, flexible and focused monetary policy in the second half of the year, its central bank said on Saturday, as it seeks to support growth while keeping the digital economy in check.
China’s economy has seen a strong rebound from the impact of the COVID-19 pandemic, but recent data has suggested that gains are fading.
Factory activity in July grew at the slowest pace in 17 months since February 2020, when the impact of the closures to control the coronavirus pandemic was first felt. New export orders contracted for three consecutive months.
China’s months-long regulatory crackdown on a number of private companies has also left technology newcomers and decades-long companies operating in a new and uncertain environment.
The People’s Bank of China (PBOC), in a statement on its website on Saturday after a meeting on its priorities for the second half of the year, called for “rectifying” e-commerce and other technology companies and said it would “maintain a high level of pressure “on companies that speculate in digital currencies.
China will focus on maintaining stability in its macro policies during the second half and will not inject massive liquidity through “flood-like” measures, the bank said.
The central bank reiterated that China will keep the yuan exchange rate stable within a reasonable and balanced range.
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