China's monetary policy may not tighten-PBOC

China's recent pledge to conduct a prudent monetary policy does not necessarily mean the bank will continue its credit tightening measures, the China Securities Journal reported, citing a People's Bank of China official.

Tang Xu, the head of the research department of China's central bank, said in the report that the bank will encourage commercial banks to increase lending if credit growth is not strong enough to support economic growth.

Tang said in the report that the central government will