PBOC pledges to prevent overheating

China's central bank said that preventing the national economy from overheating would be its top priority, Xinhua reported (in Chinese). The central bank said in its second-quarter monetary policy report that it would continue to implement "prudent" monetary policy in the second half and would use macroeconomic control measures to maintain China's economic stability. It also pledged to take measures to control inflation and maintain price stability. The bank said it would continue to address excessive liquidity with open market operations and the reserve requirement ratio, along with the creation of more hedging instruments.