China will continue to adopt a prudent monetary policy that will be eased or tightened to the right degree, the country's central bank governor said Sunday.

"Although we no longer use the term 'neutral', the essence of our prudent monetary policy has not changed," Yi Gang, head of the People's Bank of China told a news conference on the sidelines of the annual legislative session.

The policy will stress counter-cyclical adjustment and mean that the increases in M2 money supply and aggregate financing should be in keeping with nominal GDP growth, Yi said.

It will also entail greater support to small- and micro-sized enterprises and private businesses, he added.

China's monetary policy, mainly devised to fit the domestic economic situation, will also take into account global factors and China's position in the global economic system as well as the export-oriented sectors, Yi said. 

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