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China will ensure moderate liquidity and reasonable loan growth that can contribute to employment and prevent major financial risks in the second half of the year to support the economy amid the COVID-19 pandemic, the country's central bank said on Monday.

Monetary policies will be more flexible and precise to reach small- and micro-sized companies, while the bottom line of preventing and defusing major financial risks will be observed, read a statement posted on the website of the People's Bank of China, after a teleconference on Monday.  

The central bank rolled out a series of polices in the first half of the year, including strengthening counter-cyclical policies, keeping liquidity reasonable and deferring loan and interest repayments for micro, small and medium-sized firms. It cut the reserve requirement ratio and provided 1.8 trillion yuan ($257.7 billion) worth of liquidity via relending schemes, restructured multiple local banks and took over financial institutions with potential risks. 

The central bank said it will further promote pre-establishment national treatment and a negative list approach, which means foreign companies can invest in sectors outside the list, to further open up the financial sector, promote the yuan's internationalization and safeguard multilateralism. 

The central bank also said it will support local governments in defusing regional financial risks and it will support small- and medium-sized banks to boost their capital level via bond schemes.

Global Times