Structural policies support steady economic growth, financial market stability in H1: central bank

A series of structural monetary policy measures rolled out since the beginning of this year have delivered tangible results, helping create a favorable monetary and financial environment for stable economic growth, high-quality development, and smooth operation of financial markets in the first half of the year, said a senior official from the People's Bank of China (PBOC), China's central bank, in Beijing on Wednesday.

Speaking at a press conference, Zou Lan, deputy governor of the central bank, introduced the implementation of monetary policies and financial statistics in the first half of this year.

"First, ample liquidity in the banking system has been maintained. The central bank utilized multiple monetary policy tools, including reverse repos, medium-term lending facilities (MLF), and treasury bond trading, to ensure sufficient liquidity. In the first half of the year, the fund injected through the central bank's various tools effectively offset a 1-trillion-yuan (about 147.69 billion U.S. dollars) liquidity gap caused by factors, such as reserve requirement payments and cash issuance. The average overnight interbank repo rate for depository institutions (DR001) over the first six months stood at 1.31 percent, indicating overall stable operation," he said.

"Second, the overall cost of social financing has been kept at a low level. The interest rate on structural monetary policy tools was cut by 0.25 percentage points at the beginning of the year. Efforts to disclose the comprehensive financing costs of corporate loans are being continuously advanced, reducing intermediary financing expenses," he continued.

The PBOC also strengthened financial support for key sectors, Zou said, noting that the central bank has added the quota of the relending facility for technological innovation and upgrading and the relending facility for agriculture and small businesses.

"The stable operation of financial markets has also been maintained. Recently, a pilot program for offshore Renminbi forex trading was launched in the Shanghai Free Trade Zone, allowing the headquarters of six banks to directly conduct Renminbi foreign exchange transactions with overseas entities, promoting integration between onshore and offshore markets. The central bank continues to implement the two monetary policy tools to further support the smooth operation of the capital market," Zou further stated.

Structural policies support steady economic growth, financial market stability in H1: central bank

A new round of high temperatures has gripped large parts of northwest China's Xinjiang Uygur Autonomous Region since Monday, with local observatory forecasting scorching days through next week, and possibly longer in southern and eastern areas.

According to weather authorities, most plain areas in Xinjiang will see temperatures above 35 degrees Celsius over the next week.

Parts of the northern slope of the Tianshan Mountains, the southern Xinjiang basin or Tarim Basin, and eastern Xinjiang will experience temperatures exceeding 40 degrees Celsius. Some areas in Bayingolin Prefecture, Turpan and Hami could see temperatures soar above 45 degrees Celsius, with temperatures in Turpan likely to exceed 50 degrees.

"The first factor is the circulation pattern. Before July 14, the Iranian subtropical high and the Western Pacific subtropical high remained separate. On July 15, the two systems will connect, triggering the high temperatures in Xinjiang. Especially after July 15, the Iranian high expanded notably eastward, essentially creating a 'heat dome', a cap of high pressure that traps heat over the region. The second factor is the predominance of clear and sunny weather across most areas, which allowed direct sunlight to reach the ground and drive up surface temperatures significantly. The third factor is Xinjiang's topography (three mountain ranges sandwiching two basins) which hinders the dissipation of heat and helps sustain the prolonged heatwave," said Li Ruqi, chief forecaster of Xinjiang Meteorological Observatory.

Local meteorological authorities have issued high‑temperature warnings in response to the prolonged heat.

Several cities have stepped up road‑watering operations to lower ground temperatures. Water resources and disease control departments have also released risk alerts, urging authorities and residents to guard against mountain torrents from snowmelt and to take precautions to protect personal health.

Heatwave grips Xinjiang, with temperatures expected to hit 35-50 degrees Celsius