China's central bank has put forward the idea of "dynamic fine-tuning" in its second quarter monetary policy report issued on Wednesday, August 5.
According to the report in question, China's central bank will continue to implement its moderately loose monetary policy while at the same time fine-tuning its policy with market-oriented tools in line with economic changes and price changes both at home and abroad.
The central bank report states that the bank will give closer guidance to financial institutions so as to ensure timely capital supply to centrally-invested projects. Meanwhile, loans to industries characterized by high energy consumption, high pollution and overcapacity are to be strictly curbed. In addition there is to be tightened supervision on a macro-economic level. The report also sounds a note of caution, stressing that China's recovery is not yet on solid foundations.