China Poised for Supportive Monetary Policy and Bond Market Trading Boost

China will maintain a supportive monetary policy stance and is preparing for the central bank to start trading in the secondary bond market, said PBOC Governor Pan Gongsheng. The central bank will use various monetary policy tools and will work to prevent exchange rate overshooting.

China will stick to a supportive monetary policy stance, while conditions for the central bank to start trading in the secondary bond market has become gradually ripe, the head of its central bank said on Wednesday. China will flexibly use various monetary policy tools including interest rates and reserve requirement ratios, People's Bank of China (PBOC) Governor Pan Gongsheng told the Lujiazui Forum in Shanghai.

He added that China will resolutely prevent exchange rate overshooting.