China stresses credit support for small firms

Updated: 2011-11-22 17:00


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BEIJING - China should continue its credit support for cash-strapped small firms while keeping overall credit volume stable, a senior central bank official has reiterated.

A statement posted Tuesday on the website of the People's Bank of China, or the central bank, quoted the organization's vice-governor, Hu Xiaolian, as saying that China should also guide banks to offer more funding to agricultural sectors, major ongoing construction projects and affordable housing programs.

Overall credit volume should be kept at a stable level, she said.

The nation should maintain a prudent monetary policy and fine-tune it in an appropriate and timely manner, she said.

China has tightened it monetary policy to keep surging consumer prices in check. The central bank so far has raised interest rates three times and hiked reserve requirement ratio six times this year to mop up excessive liquidity.

"Financial macrocontrols have gradually taken effect and excessive price gains have been brought initially under control," Hu said.

China still has strong inner growth momentum, but faces challenges both at home and abroad, especially from the escalating European debt crisis, she said.