Central bank reiterates credit policy stance

The central bank has reiterated its commitment to stick to the "moderately loose" monetary policy that, according to it, has helped spur economic growth and revive the stock and property markets.

"In the period ahead, the People's Bank of China (PBOC) will unswervingly implement the appropriately loose monetary policy while fine-tuning policy with market-oriented tools in line with economic changes at home and abroad," the bank said yesterday in its quarterly monetary policy report.

While the US and Western economies have faced a credit crunch, there is a credit feeding frenzy in China. During the first half of this year, banks have lent nearly 7.4 trillion yuan - far exceeding the country's initial full-year target of disbursing 5 trillion yuan in loans.