Policy to ease funding troubles for small firms

Chinese monetary policy will be more flexible and effective in channeling funds into the real economy, especially for small and micro-sized enterprises, in order to stabilize economic growth, central bank officials said at a news conference on Tuesday.

Monetary policy will strike a better balance between stable growth and risk management, and encourage financial institutions to inject funds into targeted areas, said Zhu Hexin, the newly appointed vice-governor of the People's Bank of China, the central bank.

Zhu pledged to keep liquidity at a reasonable and ample level, but without strong policy stimulus.