First, the Law of the PRC on the People’s Bank of China specified that the ultimate objective of monetary policy is “to maintain the stability of the value of the currency and thereby promote economic growth”.
Second, measures were taken to reform the credit plan management system which featured “centralized management on deposits and loans”, eliminate caps on credit scales, gradually establish the M2 money supply as the intermediate target of monetary policy, and develop in due time indicator of aggregate financing to the real economy (AFRE) as an important source of reference for monetary policy.