BEIJING, CHINA - China's central bank said it will maintain a monetary policy aimed at bolstering the economy, but will also start applying "fine-tuning", in what analysts see as a sign of emerging caution.

"The People's Bank of China will... resolutely continue to carry out its moderately loose monetary policy," it said in its second quarter policy implementation report posted on its website late Wednesday.

The bank has on several occasions in recent weeks stressed its monetary policy would continue, in an apparent attempt to address investor fears that credit will be tightened.

Chinese banks extended a record 7.4 trillion yuan (1.1 trillion dollars) in new loans in the first half of the year as they heeded government calls to support growth amid the global downturn.

However, the central bank did suggest it may adjust the flood of loans, amid concerns they have been funneled into the asset markets for quick profit, rather than being put to use to bolster the economy.

"We will impose some market-based fine-tuning measures according to domestic and foreign economic trends and price changes," the central bank said.

"We should appropriately handle the relationship between supporting economic growth and preventing and resolving financial risks," it added.