The 2024 Financial Street Holdings Forum Annual Meeting opened on October 18th, with the theme of "Trust and Confidence - Discussing Financial Openness, Cooperation, and Shared Economic Stability." Pan Gongsheng, Governor of the People's Bank of China, Li Yunze, Director of the China Banking and Insurance Regulatory Commission, Wu Qing, Chairman of the China Securities Regulatory Commission, and Zhu Hexin, Deputy Governor of the People's Bank of China and Director of the State Administration of Foreign Exchange, attended the opening ceremony and delivered speeches.

The following are the key points:

Pang Gongsheng, Governor of the People's Bank of China:

① It is expected that before the end of the year, based on market liquidity conditions, there will be further adjustments to reduce the deposit reserve ratio by 0.25-0.5 percentage points at an appropriate time; lowering the 7-day reverse repo operation rate in the open market by 0.2 percentage points; reducing the medium-term lending facility rate by 0.3 percentage points. This morning, commercial banks have already announced a reduction in deposit rates, and it is expected that the Loan Prime Rate (LPR) announced on October 21 will also decrease by 0.2-0.25 percentage points.

② China's economy has undergone profound structural adjustments and dynamic balance, and in the future, it is necessary to achieve balance in three aspects: balancing economic growth rate and quality, balancing internal and external economies, and balancing investment and consumption.

③ Further improving the monetary policy framework, the target system will consider the reasonable rebound of prices as an important factor.

④ Two tools to support the stable development of capital markets are completely based on market principles, and providing swap facilities is not direct monetary support from the central bank.

The central bank provides specific guidance for share buybacks and shareholding repurchase loans, and the bottom line is that credit funds should not enter the stock market illegally.

Recently, the central bank has communicated with the market several times about the running of long-term treasury bond yields, aiming to curb the systemic risk of unilateral downward movement of long-term treasury bond yields caused by herd mentality.

Director of the China Banking and Insurance Regulatory Commission (CBIRC) Li Yunze:

Strengthen the implementation of a package of policies supporting stable economic growth, accelerate the circulation of funds, optimize the credit management model, and effectively enhance the ability to serve the real economy.

Guide financial institutions to continuously increase financial supply, fully support the improving economy; strengthen efforts on both supply and demand sides, unblock credit issuance bottlenecks; leverage banks as the main force in financing, with 'willing to lend,' 'able to lend,' and 'dare to lend' being crucial.

Fight the tough battle of resolving household disputes, boost the stabilization of the real estate market; accelerate the expansion and improvement of the urban real estate financing coordination mechanism, ensuring that 'those who should enter will enter,' 'those who should lend will lend,' and 'the sooner the better.'

Increase efforts in cultivating patient capital to promote the development of new quality production factors; support eligible insurance institutions to establish private equity securities investment funds, and increase efforts to stabilize the market by entering the market.

Finance and risk go hand in hand, having risks does not mean being irresponsible, the key is to see if duties are fulfilled; it is necessary to speed up the formulation and implementation of strong operational due diligence exemption rules, accurately assign responsibilities and reasonably grant exemptions, and encourage taking responsibility.

⑥ Broaden capital supplement channels, support large banks to accelerate the supplement of core Tier 1 capital, and expand credit growth space.

⑦ Encourage financial asset management companies to play a greater role in supporting technological innovation. The scale of a new batch of 18 intended funds in pilot cities has exceeded 250 billion yuan.

Chairman of the China Securities Regulatory Commission, Wu Qing:

① The China Securities Regulatory Commission will further deepen the reform of the capital markets, formulate a plan to deepen the reform of the capital markets, and deepen the investment and financing reform of the capital markets.

② The China Securities Regulatory Commission will further improve the coordination and development mechanism between the primary and secondary markets, making the market financing scale and pace more scientifically reasonable.

③ Regarding pricing in the primary and secondary markets, investor protection, and other issues, the China Securities Regulatory Commission will use typical cases as a starting point to achieve practical results.

④ Further enhance policy stability, transparency, and predictability, allowing all kinds of funds to develop better and better.

⑤ On the issue of shareholder shareholding reduction, from the recent trading data, there has been no clustering or illegal reduction in the past year or after September 24 and 26. The China Securities Regulatory Commission allows legal and compliant reduction of shares, but resolutely crack down on illegal or circumventing reductions. For recent illegal behaviors discovered, buybacks and return of price differences have been requested, bearing certain responsibilities.

The China Securities Regulatory Commission will steadfastly continue to promote all-round institutional opening of the market and institutions, broaden overseas listing channels, and encourage foreign institutions to invest and expand business in China.

CSi All Share Investment Banking & approved 20 securities companies and fund companies to apply for PBOC swap facility.

State Administration of Foreign Exchange Director Zhu Hexin:

① Currently, foreign direct investment has improved, foreign investment in RMB assets has increased; in the future, China's foreign exchange market will operate steadily, maintaining the general principle of international balance of payments;

② SAFE, together with relevant departments, will expand the high-level opening of the bond market to the outside world;

③ Conduct a comprehensive evaluation of the implementation of key foreign exchange policies in key areas such as Beijing, Shanghai, Guangzhou, pilot free trade zones, etc.;

④ Implement stringent regulatory requirements, crack down severely on all types of illegal foreign exchange activities.

This article is reproduced from 'Wind', edited by Daiwa Capital Markets: Liu Jiayin.