China central bank to keep yuan stable, maintain prudent monetary policy

HONG KONG: China's central bank said on Friday night that it would keep its yuan currency stable and maintain its prudent monetary policy to ensure financial stability in the world's second-largest economy.

The People's Bank of China (PBOC), the central bank, will guide financial institutions increasing medium to long term investment in manufacturing and private firms, it said in its second-quarter monetary policy implementation report.

The central bank also said it would support commercial banks to replenish capital via various channels including perpetual bond issue to enhance the economic capability of financial services. ?Reuters