SHANGHAI, June 28 China's central bank will
guide financial institutions to maintain reasonable lending
policies, its chief said on Friday.
Zhou Xiaochuan also told a financial forum in Shanghai that
the People's Bank of China will adjust market liquidity in an
Last week, PBOC allowed money market conditions to tighten
and rates to soar to historic levels.
It later moved to quell fears the squeeze could spin out of
control into a full-blown financial crisis, but made it clear
that cash conditions were being tightened and lenders should
improve money management and lending practices.