China Says Risks Controllable, Vows to Keep Liquidity Ample

(Bloomberg) -- China will maintain “reasonably ample” liquidity and “reasonable growth” in aggregate financing as it implements a prudent monetary policy, the State Council’s financial stability and development committee says at a conference chaired by Vice Premier Liu He.

• Various risks are “controllable” overall as the economy is stable and financial system is stable and healthy, a statement about the State Council meeting says
• China will encourage banks to replenish capital using more innovative tools and improve support of the real economy, especially for smaller companies
• China will increase counter-cyclical adjustments in economic policy
• The statement reiterates a proactive fiscal policy
• NOTE: CHINA REACT: PMI Undershoot Underlines Need for Policy Support

To contact Bloomberg News staff for this story: Li Liu in Beijing at lliu255@bloomberg.net

To contact the editors responsible for this story: Shamim Adam at sadam2@bloomberg.net, Gregory Turk

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