China's central bank said Tuesday it would improve the framework of regulation underpinned by monetary policy and macro-prudential policy in 2018.

The improvements will be made partly by stepping up supervision over shadow banking and real estate finance to fend off financial risks, according to a statement of the work conference of the People's Bank of China (PBOC), the central bank

Such a regulation, known as a "two-pillar" policy framework, was established in 2017 to better dissolve systemic risk and ensure financial stability. Under the system, liquidity has becomes more stable, cross-border capital flow more balanced and off-balance sheet wealth management products better supervised.

The PBOC also said it would maintain a prudent and neutral monetary policy, and direct more capital into key economic areas and weak links, such as rural vitalization and poverty relief.

More efforts will be made to improve disposal of bond defaults, and unify rules on approval and information disclosure of corporate credit bond issuance.

The central bank also listed financial services in home rentals, establishment and improvement of a long-term mechanism on supervision over online finance and on risk prevention, and opening up of the bond market as important tasks this year.

 

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