he monetary policy should “maintain strategic focu

cus”, keeping it prudent while the liquidity should be at a reasonably adequate level, it said.

Financial policies are required to further support small and private companies, and fun

ding through the capital market is supported by the authorities, according to the statement.

The central bank had skipped open market operations for 15 conse

cutive working days until Monday. “Reasonable and adequate liquidity in the banking syste

m” was the main reason for the absence of open market operations, according to a statement from the central bank.

To cut or not to cut the RRR, a strong tool for liquidity adjustm

ent, has become a hot topic since April, not only for investors, but also for policy advisers.

Divergent opinions are spreading among a broader group of market observer

s. The market is trying to get more indications from the monetary authority, although the C

hinese central bank barely sends any hints on possible monetary policy operations before taking action.

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