BEIJING - China will continue implementing prudent and neutral monetary policy to create a neutral and moderate financial environment for supply-side structural reform, the country's central bank said Friday.

The People's Bank of China (PBOC) will combine price-based and quantitative monetary tools as well as macro-prudential policies to fine-tune liquidity conditions, according to the quarterly report released by the PBOC.

Developing direct financing will be prioritized, and indirect financing structure will be improved.

More financial support will be given to small and medium-sized enterprises, rural and remote areas, agriculture and farmers, the report said, adding that green finance is encouraged.

The PBOC will play a more active role in guarding against systemic financial risks, according to the report.