China's financial sector could contribute more to stabilizing economic growth, amid a better balance with risk control, to create new growth engines and boost domestic demand, according to a Cabinet-level meeting.
The latest meeting of the State Council Financial Stability and Development Commission, chaired by Vice-Premier Liu He, highlighted improving efficiency of the monetary transmission mechanism — a way to influence economic growth through changing some monetary policy variables — to strengthen economic growth in the second half, according to a statement released on the State Council's website on Friday.
The monetary transmission mechanism could be improved by adjusting bank lending rates, asset prices, market expectations and exchange rates. The final target is to channel more cheap funds, quickly and more easily, to some key areas such as manufacturing, high-tech and small-scale businesses, said economists.