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BEIJING, Aug. 5 (Xinhua) - The People's Bank of China (PBOC), also known as the central bank, said Thursday it would maintain its moderately loose monetary policy and enhance financial supports to boost the economy's sustainable development.The bank will apply multiple monetary tools to keep an appropriate growth in money supply in a bid to strike a balance between meeting the need of funding economic development and managing the inflation expectation, the PBOC said in a statement posted on its website.The PBOC reiterated it would maintain continuity and stability in monetary policy while, at the same time, making the policy more specific and more flexible.It vowed to improve the yuan's exchange rate mechanism, and increase financial support to promote the transformation of the economic growth pattern and adjustment of the economic structure.China's broad money supply (M2), which covers cash in circulation and all deposits, increased 18.5 percent year on year to 67.39 trillion yuan by the end of June, which marked a slowdown from the 21 percent increase at the end of May, the PBOC said.During the same period, narrow money supply (M1), cash in circulation plus current corporate deposits, climbed 24.6 percent from a year earlier to 24.06 trillion yuan, representing a decrease of 5.3 percentage points from the end of May, according to the PBOC.The bank also warned of potential domestic inflation risks due to complicated situations both at home and abroad.Increases in the costs of labor and environmental requirements, combined with continuing progresses in the reforms in the prices of resource products, will likely impact the inflation expectation.Meanwhile, the central bank pointed out that external 'hot money' may push up price hike pressures."The global monetary situation is relatively loose, as nations across the world have been prudent in their stimulus exits due to continuing uncertainties in the economic recovery. Excessive money is likely to seek various outlets, adding potential risks of inflation expectations," the PBOC said in its statement.

BEIJING, July 15 (Xinhua) -- German Chancellor Angela Merkel arrived here Thursday night, starting a four-day official visit to China.During Merkel's stay in Beijing, Chinese President Hu Jintao will meet with her. Chinese Premier Wen Jiabao will hold talks with her. And Chinese Vice President Xi Jinping will also meet with her.Besides Beijing, Merkel will pay a visit to Xi'an in northwest China's Shaanxi Province.In 2005, Merkel became the first female chancellor of Germany and was reappointed in 2009.Merkel has made four visits to China--as minister for environment, nature protection and reactor safety in August 1997; and as chancellor in May 2006, August 2007 and October 2008.

BEIJING, June 21 (Xinhua) -- Chinese President Hu Jintao and Premier Wen Jiabao on Monday made directives urging rescuers to "exhaust all means possible" to save miners trapped in an exploded colliery in central Henan Province.A total of 72 miners were trapped after explosives went off at the powder magazine of the Xingdong No.2 Mine in Weidong District of Pingdingshan City at about 1:40 a.m. At least 46 people were reported dead.

BEIJING, Aug. 26 (Xinhua) -- Chinese senior legislator Chen Zhili on Thursday called for preferential policies in taxation for enterprises using cleaner production methods to promote their competitiveness.Chen, vice chairwoman of the National People's Congress (NPC) Standing Committee, made the remarks during her report on an inspection on the enforcement of the Cleaner Production Promotion Law.Favorable policies and funding provided in the law had been poorly implemented, and that had impaired the enterprises' initiative in achieving cleaner production, Chen said.Chen said statistics gathered during the inspection did not provide reasons to be optimistic. During the period from 2003 to 2009, only 0.15 percent of the enterprises nationwide had integrated the cleaner production review into their operations.Chen also noted the serious situation of excessive packaging used in protecting products.Statistics revealed that China had been consuming 40 million tonnes of wrapping materials annually, and the bulk of this was used for extravagant packaging, Chen said.Future policies should make detailed provisions on requirements of enterprises eligible for such tax preferences, and those enterprises, which had made outstanding efforts in cleaner production, should be rewarded, Chen said.Chen also urged streamlining the task assignments among different governmental departments in law enforcement and promote the government's supervisory responsibilities.