Li calls for careful analysis of reasons for recent spate of rapid increases

China will work to ensure the supply of commodities and keep their prices stable, in order to maintain steady economic performance, the State Council's Executive Meeting chaired by Premier Li Keqiang decided on Wednesday.

Since the beginning of this year, due to multiple factors, especially global price rises, some commodities have seen an extended price rally, with the prices of some hitting records.

"We must carefully analyze the reasons behind this round of the rapid increase in commodity prices and focus on the crux of the issue, to adopt measures in a targeted and holistic approach," Li said.

A host of steps were decided on to strengthen the two-way adjustment of supply and demand, including raising export tariffs on certain iron and steel products, temporarily exempting tariffs on pig iron and scrap steel, and canceling export tax rebates for some steel products, in order to increase supply in the domestic market.

The country's rich coal resources will be further tapped. Key coal companies will be encouraged to raise production and supply while ensuring safety, and the capacity of wind, solar, hydro and nuclear power will be increased to ensure energy supply during the summer peak time.

Opening-up will be pushed forward, in order to recalibrate imports, exports and buffer reserves of commodities, facilitate customs clearance and better leverage international and domestic markets and resources, in order to more effectively ensure supply and keep prices stable.

The regulation of the futures and spot markets will be better coordinated and targeted measures will be taken when appropriate to screen abnormal transactions and malicious speculation. Irregularities such as making monopolistic deals, spreading false information, price gouging and hoarding will be dealt with to the full extent of the law and brought to light.

"While the market continues to play a decisive role in resource allocation to ensure the supply of commodities and keep their prices stable, the government must better fulfill its responsibility. Any monopoly and hoarding will be cracked down upon under the law to step up market regulation," Li said.

Efforts will be made to maintain the stability of monetary policy and keep the RMB exchange rate broadly stable at an adaptive and balanced level, in order to guide market expectations as appropriate.

Policies to provide tax relief for micro and small enterprises and self-employed individuals and refund all due value-added tax credits to advanced manufacturing enterprises on a monthly basis will be effectively implemented, and procedures for such concessional tax policies will be streamlined.

Direct-benefit monetary policy tools will be well executed. Relending and rediscounting will be scaled up to underpin inclusive finance. Policies to incentivize reductions in the guarantee fees of financing for micro and small enterprises will be well exercised, in order to encourage banks to issue more credit-based loans.