Read in Chinese

Speakers: 

Mr. Lu Lei, deputy governor of the People's Bank of China (PBC)

Ms. Li Hongyan, deputy administrator of State Administration of Foreign Exchange (SAFE)

Mr. Zou Lan, director general of the Monetary Policy Department of the PBC

Mr. Peng Lifeng, director general of the Credit Market Department of the PBC

Mr. Xiao Sheng, director general of the Capital Account Management Department of SAFE

Chairperson:

Xing Huina, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

Sept. 5, 2024

Xing Huina:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Lu Lei, deputy governor of the People's Bank of China (PBC), and Ms. Li Hongyan, deputy administrator of State Administration of Foreign Exchange (SAFE), to brief you on relevant work and to take your questions. Also present today are Mr. Zou Lan, director general of the Monetary Policy Department of the PBC, Mr. Peng Lifeng, director general of the Credit Market Department of the PBC, and Mr. Xiao Sheng, director general of the Capital Account Management Department of SAFE.

Now, I'll give the floor to Mr. Lu Lei for his introduction.

Lu Lei:

Thank you. Good afternoon, everyone. I'm delighted to be here for this face-to-face exchange. I, alongside my colleagues, will give you a briefing on the financial work being done to promote high-quality development.

First of all, I would like to express my heartfelt gratitude for your long-term interest in and reporting on the reform and development of the financial sector, including the work of the PBC.

The Party Central Committee with Comrade Xi Jinping at its core attaches great importance to financial work. The third plenary session of the 20th Central Committee of the Communist Party of China (CPC) has made comprehensive arrangements to deepen the reform of the financial system, charting the course and setting the goals for optimizing financial services and promoting high-quality development. The PBC has thoroughly implemented the decisions and deployments of the Party Central Committee and the State Council, adhered to the fundamental principle of providing financial services to the real economy, and comprehensively balanced the relationship between short term and long term, steady growth and risk prevention as well as internal and external factors, effectively promoting the construction of a high-quality development pattern featuring mutual reinforcements for the real economy and the financial system. Since the beginning of this year, we have focused on the following aspects, which I would like to share with you:

First, in accordance with the requirements of a prudent monetary policy that is flexible, moderate, precise and effective, we made three significant monetary policy adjustments in February, May and July, adopting comprehensive measures in terms of aggregate, price, structure and transmission to maintain reasonable and sufficient liquidity and to promote steady declines in social financing costs. We have given guidance on optimizing the credit structure, improved the efficiency of fund utilization and effectively supported economic recovery and growth. The RMB exchange rate has remained generally stable at an adaptive, balanced level.

Second, we have fully devoted ourselves to the five major areas — technology finance, green finance, inclusive finance, pension finance and digital finance — and enhanced financial support for major strategies, key areas and weak links. At the macro-policy level, we have emphasized top-level design and systematic planning, formulated and issued policy documents, and strengthened statistical monitoring and evaluation of effects. At the working mechanism level, we are committed to improving the incentive compatible mechanism. We have guided financial institutions to make full use of various structural monetary policy instruments and continuously enhance their financial service capabilities. At the financing channel level, we have supported enterprises in financing through the bond market; and we have cooperated with relevant departments to facilitate fundraising, investment, capital management and exit in the venture capital industry, with special attention given to supporting the development of startups.

Third, we have continuously improved the risk prevention and disposal mechanism and ensured that no systemic financial risks arose. To ensure both development and security, we have worked with relevant departments to effectively address and resolve financial risks in key areas, and continuously strengthen the capacity building in financial risk monitoring, early warning and assessment, with a particular focus on the construction of an early correction mechanism with hard constraints, risk prevention and control of small and medium-sized financial institutions as well as risk prevention through reform. By establishing a financial risk disposal mechanism featuring equal rights and responsibilities and incentive-constraint compatibility, we have strengthened the resource guarantee for risk disposal and woven a tight and solid net for financial safety. Currently, the number of high-risk small and medium-sized banks has decreased by nearly half from its peak.

Fourth, we have continuously promoted high-standard opening up of the financial sector and actively participated in international financial governance and cooperation. By the end of July, overseas investors held 4.5 trillion yuan ($637.68 billion) of Chinese bonds, a record high. The RMB accounted for 6% of global trade financing, ranking second. We will continue to strengthen communication and cooperation with international financial organizations and monetary authorities of major economies, actively participate in international financial governance, and enhance our capacity for opening up through expanded international cooperation.

In summary, the monetary policy and the five major areas of finance are the footholds for the PBC to promote high-quality economic and social development through financial services, while risk prevention and control and financial openness are inherent requirements for promoting the high-quality development of the financial industry itself. We are about to celebrate the 75th anniversary of the People's Republic of China this year. The PBC will thoroughly implement the guiding principles from the third plenary session of the 20th CPC Central Committee, unwaveringly follow the path of financial development with Chinese characteristics and promote high-quality development of the economic and financial sector.

That's all I have to say. Thank you.