Speakers:
Mr. Pan Gongsheng, governor of the People's Bank of China (PBC)
Mr. Zhu Hexin, deputy governor of the PBC and administrator of the State Administration of Foreign Exchange (SAFE)
Mr. Xuan Changneng, deputy governor of the PBC
Chairperson:
Ms. Shou Xiaoli, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO
Date:
Jan. 24, 2024
Shou Xiaoli:
Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are joined by Mr. Pan Gongsheng, governor of the People's Bank of China (PBC); Mr. Zhu Hexin, deputy governor of the PBC and administrator of the State Administration of Foreign Exchange (SAFE); and Mr. Xuan Changneng, deputy governor of the PBC, to brief you on implementing the decisions of the Central Economic Work Conference and providing financial support for the high-quality development of the real economy, and to take your questions.
Now, let's give the floor to Mr. Pan for his introduction.
Pan Gongsheng:
Thank you. Good afternoon. I'm very glad to speak with you today alongside Mr. Zhu and Mr. Xuan.
First of all, I'd like to express my gratitude to you all for your interest in and coverage of reform and development of the financial sector as well as for the work of the PBC and the SAFE.
The CPC Central Committee with Comrade Xi Jinping at its core highly values financial work. General Secretary Xi Jinping delivered an important speech at the Central Financial Work Conference last year, underlining that China will remain committed to the path of financial development with Chinese characteristics, boost high-quality development of the financial sector , and accelerate the building of China into a strong country in finance. The Central Financial Work Conference held at the end of last year outlined the overall requirements, policy orientation and key tasks for the financial work in 2024. Recently, General Secretary Xi Jinping addressed the launch ceremony of the special seminar on provincial and ministerial-level key officials promoting high-quality development of finance. His important speech provided renewed mobilizations and deployments for effectively handling current and future financial tasks in the coming period.
The PBC and the SAFE, in the spirit of being professional and down-to-earth, will effectively implement the decisions and deployments of the CPC Central Committee, and adhere to the fundamental purpose of providing financial support for the real economy. We will intensify macro regulation, enhance counter- and cross-cyclical adjustments, consolidate and cement the recovery momentum of the economy, and continuously promote the high-quality development of the economy.
In 2024, we will focus on the following work:
First, we will adhere to the prudent monetary policy, faithfully implement the requirements of maintaining flexible, appropriate, precise and effective policies, and continue to foster a favorable monetary and financial environment for the steady growth of the real economy. Last year, we appropriately enhanced counter-cyclical adjustments, reduced the required reserve ratio two times, and cut policy rate two times. We also guided an orderly reduction of the existing housing loan rate, and steered financial institutions to maintain an appropriate aggregate of credit and ensure a stable issuance pace. These measures yielded positive results. In 2024, in terms of the aggregate, we will comprehensively leverage multiple monetary policy tools, maintain reasonably ample liquidity, and ensure that the aggregate financing and money supply are in step with the targets of economic growth and price levels. Regarding the pace, we will ensure balanced issuance of new credit and enhance the stability of credit growth. Concerning the structure, we will continually optimize the credit structure, and boost financial support for private companies as well as micro and small enterprises. Additionally, we will earnestly implement the recently issued 25 measures on strengthening financial support for the private economy, and improve the quality and effectiveness of providing financial support for the real economy. At the same time, we will focus on putting inefficiently used financial resources to work and make more efficient use of idle funds. As for prices, we will consider internal and external balance, promote steady reduction of overall financing costs, and keep the RMB exchange rate generally stable at an adaptive, balanced level.
Second, we will strengthen financial support to major strategies, key areas and weak links, and focus on supporting the "five priorities" of technology finance, green finance, inclusive finance, pension finance and digital finance . In 2023, we further increased the effectiveness of monetary policy in promoting economic structure adjustment, transformation and upgrading, and the transformation from old to new growth drivers. In addition, we guided financial institutions in increasing credit support to key areas and weak links. The growth rates of inclusive loans to small enterprises, loans to technology-based small businesses, medium and long-term loans to the manufacturing sector, and green loans were much higher than the average growth rate of all lending in 2023. Going forward, we will continue to use monetary policy tools to adjust both the monetary aggregate and the monetary structure, and enhance tool innovation. We will also continue to guide financial institutions in focusing on supporting the "five priorities." To this end, the PBC will set up a credit market department under central approval.
Third, we will prudently and effectively prevent and defuse financial risks in key areas. Preventing and controlling financial risks is an ongoing pursuit in the financial work. At present, China's financial risks are generally manageable, the overall operation of financial institutions are stable and the financial market operation is steady. Next, we will strengthen the capacity for financial risk monitoring, early warning and assessment, and work toward establishing a financial risk liability management mechanism that aligns responsibilities with authority and integrates incentives and constraints. Employing market-oriented, law-based measures, we will cooperate with local governments and relevant departments in prudently and effectively preventing and defusing financial risks in key areas and institutions. Furthermore, we will refine the financial safety net and continue to promote legislation on financial stability.
Fourth, the PBC will continuously carry out financial reform and opening up. In terms of advancing financial reform, the PBC will strive to build a financial market that is rule-based, transparent, open, vibrant, and resilient. It will further optimize the financing structures, market systems and product systems, in a bid to offer better and more efficient financing services for the growth of the real economy. The PBC will also further bolster the development of the market related to credit and payment. Recently, the PBC has been working with the provincial government of Zhejiang to guide Qiantang Credit Rating through its application for a licensed personal credit firm. As for resolutely promoting high-quality financial opening up, the PBC will expand institutional opening up in the financial sector and boost connectivity between domestic and overseas financial markets. It will also take prudent and solid measures to step up the internationalization of the RMB and continue supporting Hong Kong and Shanghai in improving their statuses as international financial centers.
Fifth, the PBC will proactively participate in global financial governance and further forge international financial cooperation. The PBC will put multilateralism into action, strengthen communication, and promote coordination in global macro-economic and financial sectors through platforms such as the Group of 20 (G20), the International Monetary Fund (IMF), and the Bank for International Settlements (BIS). The PBC will honor the consensus reached at the China-U.S. presidents' meeting in San Francisco and take the lead in carrying out the tasks of the China-U.S. and China-EU financial working groups.
This year marks the 75th anniversary of the founding of the People's Republic of China. We firmly believe that, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, we will surely make progress along the path of financial development with Chinese characteristics and contribute to building a great country on all fronts through a Chinese path to modernization via the financial sector.
That concludes my introduction. Next, my colleagues and I will take your questions.
