Zhou told the central bank's annual meeting held in Beijing last week that in 2003, the supply of both broad money (M2) and narrow money (M1) was projected to grow by some 16 percent, the net input of cash would be controlled within 150 billion yuan (about US$18.14 billion), and all kinds of loans would be increased by 1.8 trillion yuan.

This year the central bank would steadily promote the reform of the interest rate management system; make efforts to develop the monetary market and rationalize the distribution of financial resources; continue to exploit the guiding role of credit policies, step up credit supervision and optimize the credit structure; urge commercial banks to reinforce their management of real estate credit and prevent long-term credit risks, he said.

He stressed that the country's target of building a relatively well-off society provided extensive room for the development of the financial industry. China's entry into the World Trade Organization would make financial competition even more fierce. The financial industry should clearly understand the new situation and new challenges, and step up study of significant issues in the financial field, to better promote China's financial reforms and development.

According to Zhou, in 2002 China's financial industry made great achievements in such sectors as money supply, the increase in loans, financial supervision, financial legislation, international payments and financial services, providing powerful support for the country's economic growth and restructuring.

(Xinhua News Agency January 27, 2003)