China to stabilise monetary policies and ensure the stable supply and prices of commodities

SHANGHAI, May 25 (SMM) – Chinese Premiere Li Keqiang stated on an executive meeting of the State Council that the government will maintain the stability of monetary policies and RMB exchange rate at a reasonable and balanced level, and rationally guide market expectations. Tax reduction and exemption policies will be implemented for small and micro enterprises and individual businesses to help them tackle with the rising costs. The meeting emphasised that the government should implement direct monetary policy tools, increase re-lending and rediscount to support inclusive finance, guide banks to expand credit loans, and investigate abnormal transactions and malicious speculations.

China should curb high-energy-consuming projects, urge key coal companies to increase production and supply with rich coal resources under the premise of safety, increase output from wind power, photovoltaics, hydropower, and nuclear power, so as to ensure the energy supply in summer.

Li also pointed out that the prices of commodities have been on the rising trend this year, and the government should guarantee the supply of bulk commodities, curb unreasonable price increases, and prevent transmission to consumer prices.

On the other hand, Han Zheng, Vice premier of the State Council stated that China must continue to vigorously promote the reduction of production capacity in key industries, strictly control high energy-consuming and high-emission projects, and reduce pollutant emissions. Efforts should be made to solve outstanding ecological and environmental problems, strengthen the coordinated control of fine particulate matter and ozone, and ensure the continuous improvement of air quality. It is necessary to promote synergy in reducing pollution and carbon emissions, optimise the energy structure, and promote a comprehensive green transformation of economic and social development.

Local governments are focusing on self-examination and correction of the exit of production capacity, project construction, implementation of previous inspections and rectifications, reporting and verification in the steel industry. The ministries will carry out on-site inspections during June to end-July.