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Speakers:

Chen Yulu, deputy governor of the People's Bank of China

Xiao Yuanqi, vice chairman of the China Banking and Insurance Regulatory Commission

Li Chao, vice chairman of the China Securities Regulatory Commission

Wang Chunying, deputy administrator and spokesperson of the State Administration of Foreign Exchange

Chairperson:

Shou Xiaoli, spokesperson of the Publicity Department of the Central Committee of the Communist Party of China (CPC)

Date:

June 23, 2022

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the Publicity Department of the CPC Central Committee. This is the 10th press conference under the theme of "China in the past decade." Today, we're very glad to be joined by Mr. Chen Yulu, deputy governor of the People's Bank of China (PBC); Mr. Xiao Yuanqi, vice chairman of the China Banking and Insurance Regulatory Commission (CBIRC); Mr. Li Chao, vice chairman of the China Securities Regulatory Commission (CSRC); and Ms. Wang Chunying, deputy administrator and spokesperson of the State Administration of Foreign Exchange (SAFE), to brief you on the reform and development of China's financial sector since the 18th CPC National Congress and take your questions.

Now, let's give the floor to Mr. Chen for his introduction.

Chen Yulu:

Friends from the press, good afternoon. China's financial sector has made historic achievements during the past decade since the 18th CPC National Congress. Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the PBC has followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully applied the new development philosophy, consistently deepened supply-side structural reform in the financial sector, steadily increased financial openness, balanced development and security, and advanced high-quality economic development.

Over the past decade, we have prudently implemented a monetary policy independent of undue external influence. On the basis of a comprehensive assessment of the complex and volatile economic and financial situation at home and abroad, we have used monetary policy tools to adjust both the monetary aggregate and structure, prospectively strengthened cross-cyclical adjustments, and weathered the impact of COVID-19 and other domestic and external challenges. In doing so, we have ensured steady growth, kept price rises under control, stabilized employment, and maintained a balance in international payments. We have effectively managed money supply, refrained from indiscriminate and massive stimuluses, and protected the purchasing power of the RMB. Since 2012, M2 money supply has seen an average annual growth rate of 10.8%, basically in line with nominal GDP growth, thus providing a monetary foundation for steady economic growth.

Over the past decade, guided by the new development philosophy, we have provided financial support to the real economy for its high-quality development. We have vigorously promoted green finance and the transition to green and low-carbon development. Green loans and bonds in China ranked among the largest in the world. We have formulated international rules and standards for green finance with other countries and spearheaded green finance across the world. We have upheld innovation-driven development, with medium- and long-term loans for high-tech manufacturing increasing by nearly seven times compared with 10 years ago. We have improved financial inclusiveness to boost coordinated economic and social development. By the end of the first quarter of this year, the balance of inclusive loans to micro and small businesses exceeded 20 trillion yuan, supporting more than 50 million micro and small enterprises and self-employed individuals. We have supported targeted poverty alleviation and rural revitalization with innovative financial services. We have expanded the opening-up of the financial sector by basically setting up the management system for pre-establishment national treatment plus negative list. Domestic RMB financial assets held by overseas entities are 2.4 times higher than 10 years ago. The Chinese yuan has been added to the Special Drawing Rights (SDR) basket of the International Monetary Fund (IMF), and its weight has risen from 10.92% to 12.28%, the third largest in the basket.

Over the past decade, we have focused on both development and security and forestalled systemic financial risks. We have achieved important progress in preventing and defusing major financial risks. We have properly addressed risks in key sectors and kept financial risks overall within a controllable range.

Over the past decade, we have continuously developed financial infrastructure for the era of digital economy and broken new ground in building a modern financial service system. With forward-looking and coordinated plans, we have prudently advanced the R&D and pilot programs for the digital yuan, upgraded the RMB cross-border payment system, built a credit system covering all citizens, and created the world's biggest financial credit information database. We have strengthened financial security defense lines against money laundering and fraud, and enhanced financial consumer protection.

Going forward, the PBC will continue to follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, firmly stick to the path of financial development with Chinese characteristics, and contribute more to building a great modern socialist country and achieving the second centenary goal.

Thank you.