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BEIJING, June 5-- China's central bank introduced two new monetary policy instruments this month to directly channel funds into the real economy, another sign that the country's monetary policy will not slide into quantitative easing. The People's Bank of China (PBOC) said that, starting this week, it would use 400-billion-yuan (about 56.37 billion U.S. dollars) of a special re-lending quota to purchase 40 percent of inclusive loans to small and micro businesses, issued by local banks from March 1 to Dec. 31. Another policy instrument that the PBOC introduced allows small and micro businesses to apply for deferring their inclusive loan repayments, maturing by end-2020 to March 31, 2021, with penalty payment exempted. Both policy instruments are aimed at helping small and micro enterprises maintain cash flow, gain easier access to loans, and lower the financing cost, the central bank said. It added that these tools are more market-oriented, inclusive and direct, compared to previous policies. The PBOC's move came just days after Chinese Premier Li Keqiang emphasized that China's measures of a sizable scale are designed to provide vital relief to businesses and to revitalize the market. China's previous measures to recover the economy in the face of challenges brought on by the novel coronavirus pandemic were seen by some as below expectations. In response to such viewpoints, Li told a press conference after the conclusion of the annual national legislative session, that the government will not flush China's economy with liquidity. | 
