China bank says to keep appropriate liquidity, stable yuan

China's central bank said on Monday that it would use various policy tools to maintain appropriate liquidity and reasonable growth in credit and social financing. The People's Bank of China said it would continue to implement a prudent monetary policy and keep its stance "neither too loose nor too tight". The central bank said this in a statement after the second-quarter monetary policy committee meeting. "We will improve and optimize the financing and credit structures, increase the proportion of direct financing and reduce social financing costs," it said. The central bank also reaffirmed that it would keep the yuan basically stable while pushing forward reforms to improve its currency regime.