China to Intensify Monetary Policy for Economic Stability
China is set to enhance its monetary policy adjustments to foster a stable economic environment and high-quality development. Pan Gongsheng, governor of the People’s Bank of China, emphasized the need for supportive monetary measures during a recent report presented to the Standing Committee of the 14th National People’s Congress.
“We will adhere to a supportive monetary policy, intensify and improve the precision of monetary policy regulation, effectively implement existing policies, and make greater efforts to materialize incremental policies,” Pan stated.
The central bank governor underscored the importance of maintaining adequate and reasonable liquidity while reducing financing costs for enterprises and households. He highlighted the continued use of structural monetary policy tools to bolster major strategies, key areas, and vulnerable sectors.
Pan called for synergy between monetary and financial policies and other policies such as fiscal, industrial, and employment policies. He added that China will work to prevent significant fluctuations in the exchange rate, aiming to keep the RMB exchange rate basically stable at an appropriate and balanced level.
On financial supervision, Pan noted that China will comprehensively strengthen regulation by strictly enforcing market access and supervision for financial institutions. Efforts will also focus on enhancing coordination between central and local financial supervision and protecting the rights and interests of financial consumers and investors.
Pan emphasized the need to improve the quality and efficiency of financial services. This includes encouraging financial institutions to optimize credit structures and strengthening financial support for emerging quality productive forces. The development of science and technology innovation bonds and green bonds will be vigorously promoted to nurture patient capital.
Furthermore, Pan outlined plans to deepen financial reform and opening up. This involves supporting large commercial banks in replenishing their capital, expanding investment channels for foreign investors in China’s capital market, prudently advancing the internationalization of the RMB, and promoting the development of the Hong Kong Special Administrative Region and Shanghai as international financial centers.
“Efforts will be made to prevent and defuse financial risks in a proactive and prudent manner to maintain the overall stability of the financial system,” Pan concluded.
