Currently, China's monetary and financial situation is stable, and the currency supply and growth at all levels are able to reach the expected targets, he said.

He said China will flexibly apply various kinds of policy tools next year to ensure the moderate growth of currency supply. It will not only continue to restrain the trend of deflation, but also pay attention to the influence of the rise of production cost and service value on the overall price level.

He also said that, from the development point of view, the operational method of China's financial industry need to be changed from separate-industry operation to mixed-industry operation. It can also get started from the development of cross-business combining the banking sector, insurance sector and securities sector.

From 1998, China began to adopt steady monetary policy, the main content of which includes the following aspects:

1) To moderately increase the currency supply in accordance with the principle of expanding demand to stimulate investment and consumption and check the trend of deflation;

2) To timely stipulate credit policy to guide credit investment and promote the adjustment of economic structure.

3) To strengthen financial regulation and carry out the work plan for stabilizing finance. To comprehensively readjust all kinds of financial institutions and help local financial institutions to avoid payment risks.

(People's Daily 11/08/2000)