On Friday, the People's Bank of China, the country's central bank, said it will pursue reasonable credit growth with balanced allocation next year to improve the quality and efficiency of financial support for the real economy.

Echoing the Central Economic Work Conference, the PBOC said prudent monetary policy will be flexible, moderate, precise, and effective, with strengthened counter-cyclical and cross-cyclical adjustments.

The central bank said in a statement following a meeting on Friday that it will deepen reforms to moderately reduce the overall cost of social financing, while making better use of financial resources that are inefficiently occupied.

Multiple policy tools will be used to maintain a reasonable and sufficient liquidity level and match the growth of social financing and the money supply with the expected targets for economic growth and price levels.

The PBOC will also strengthen the function of deposit insurance, improve the early correction of financial risks, promote the legislation regarding financial stability and more quickly develop the financial stability guarantee fund.