* China c.bank says to increase policy fine-tuning in H2
* Says to improve credit support for the real economy
* Says to broaden cross-boarder use of yuan currency
(Recasts, adds quotes and details)
BEIJING, Aug 5 China's central bank pledged on
Sunday to intensify its monetary policy fine-tuning in the
second half of this year and improve credit policy to bolster
the real economy, echoing earlier government commitments amid an
The comments follow a meeting of China's top policymakers
last week which said Beijing would step up efforts to make
policies more targeted, pre-emptive and effective to cope with
"In the second half, we must continue to reinforce
fine-tuning and pre-emptive adjustment in monetary policy and
improve credit policy to support the development of the real
economy," the bank said in a statement on its website
The People's Bank of China will enhance research into the
economic situation at home and abroad to better steer policy and
help maintain stable and relative fast economic growth this
year, it added.
The central bank said it would widen the use of its yuan
currency in cross-border trade and investment, and repeated that
it would gradually push ahead with capital account
convertibility for the yuan.
The central bank has also analysed potential problems faced
by the country's financial sector and will strengthen
supervision to prevent systemic risk in the industry. However,
it did not say how it would contain such risks.
China's economy is facing downward pressure from shrinking
external demand and a domestic property market downturn, with
the annual economic growth rate slowing to 7.6 percent in the
April-June period, the slackest pace in more than three years.
To spur growth, Beijing has followed a programme of policy
fine-tuning since the autumn of 2011, cutting interest rates,
easing rules on bank lending, fast-tracking investment projects
and cutting taxes and bureaucracy for businesses.
The latest Reuters benchmark poll forecasts that China's
economy should recover modestly in the second half, with growth
of 7.9 percent in the third quarter and 8.2 percent in the
China's official factory purchasing managers' index fell to
an eight-month low of 50.1 in July, suggesting the sector is
barely growing, while a rival HSBC survey indicated the more
market-sensitive private sector is starting to recover.
(Reporting by Aileen Wang and Ben Blanchard; Editing by Daniel