Source: Securities Times

On December 16, the Party Committee of the People's Bank of China held a meeting to convey and study the spirit of the Central Economic Work Conference. Following the deployment of the National Financial System Work Conference, measures for implementation were discussed and clarified. The meeting was chaired by Pan Gongsheng, the Party Secretary and Governor of the People's Bank of China, with all Party Committee members in attendance.

The meeting recognized that General Secretary ****'s important speech at the Central Economic Work Conference comprehensively summarized the economic work over the past year and the achievements made, deeply analyzed the international and domestic situations faced by our country's economic running, systematically deployed the overall requirements, main goals, and policy orientations for next year's economic work, and clarified the key tasks for next year's economic work. The speech integrates the overall situation with broad vision and profound thought, demonstrating strong political, ideological, strategic, and guiding significance, pointing out the direction for next year's various tasks. Premier Li Qiang's summary speech proposed requirements for implementing the spirit of General Secretary ****'s important speech and performing well in next year's economic work. The People's Bank of China system must unify thoughts and actions to the spirit of the Central Economic Work Conference, working diligently, pragmatically, professionally, and responsibly to solidly conduct macroeconomic regulation and financial management.

The meeting emphasized that to perform the work of the People's Bank of China well next year, it should be guided by ****'s thought on socialism with Chinese characteristics for a new era, fully implement the spirit of the Party's 20th National Congress and the second and third plenums of the 20th Central Committee, and earnestly implement the decisions and deployments of the Central Economic Work Conference and the Central Financial Work Conference. It should adhere to the general tone of seeking progress while maintaining stability, fully and accurately implement the new development concept, implement a moderately loose MMF policy, prevent and resolve financial risks in key areas and external shocks, further deepen Financial Reforms and high-level opening up, focus on expanding domestic demand, stabilizing expectations, and stimulating vitality, creating a good monetary and financial environment for promoting the continuous recovery and improvement of the economy. The main tasks to focus on include the following:

Firstly, implement a moderately loose MMF policy effectively. Utilize various MMF tools comprehensively, timely reduce reserve requirements and interest rates, maintain ample liquidity, ensuring that the scale of social financing and the money supply growth aligns with economic growth and the expected target of the general price level. Guide banks to fully meet effective Crediting demand and enhance the stability of Crediting growth. Strengthen the execution and transmission of interest rate policies, promoting a stable decline in comprehensive financing costs for society. Enhance the resilience of the Forex market, stabilize market expectations, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.

Secondly, to better support high-quality development in key areas and weak links. Adhere to the fundamental purpose of financial services for the real economy, improve the policy framework for the 'Five Major Financial Articles,' and guide commercial banks to continuously optimize the credit structure. Scientifically utilize structural monetary policy tools, and coordinate with fiscal policies, effectively combining policies to focus on supporting technological innovation, green development, boosting consumer spending, stabilizing foreign trade, and promoting the stable development of the Real Estate and Capital Markets.

Thirdly, to prudently and effectively prevent and resolve financial risks in key areas. Explore the expansion of the central bank's macro-prudential and financial stability functions, innovate financial tools, implement two monetary policy tools that support the stable development of the Capital Markets, and maintain the stability of the financial markets. Based on market-oriented and legal principles, actively support the prudent disposal of risks in local small and medium-sized financial institutions, continue to work on resolving the debt risks of financing platforms with financial support, and support the Real Estate market in stopping its decline and stabilizing.

Fourthly, to steadily advance financial reforms and high-level opening up. Progressively promote the institutional opening of the financial services industry and financial markets, advance the construction of a multi-tiered bond market, and enhance the functions of the financial market and its capacity to serve the real economy. Appropriately and solidly advance the internationalization of the Renminbi, further enhance its functions in cross-border payment, investment and financing, reserves, and pricing. Improve the competitiveness of the Renminbi cross-border payment system. Deepen the reform and opening up of the Forex field, promote the facilitation of cross-border trade and investment financing. Actively participate in international financial governance and cooperation, promote global macro policy coordination and the formulation of international financial rules. Pragmatically carry out bilateral financial work with China and the U.S., as well as with China and Europe. Support the construction and development of the Shanghai International Financial Center, and consolidate and enhance the position of Hong Kong as an International Financial Center. Adhere to the coordinated development and security, and safeguard the country's financial security.

Fifth, promote comprehensive and strict governance of the Party in depth. Solidly carry out the rectification of the central inspection, strengthen the application of rectification results, and promote the high-quality development of the central bank's business with high-quality rectification results. Promote the normalization and long-term effectiveness of Party discipline education, and persistently uphold integrity and combat corruption. Further strengthen internal management. Establish the correct orientation for selecting and employing people, and build a high-quality cadre talent team.

The meeting emphasized that various tasks must be done well at the end of the year and the beginning of the year. Closely monitor and track to ensure the stable running of the financial market. Increase efforts in payment clearing and cash supply and other central bank financial services to meet people's financial needs. Place high importance on safety production work, ensuring the safe and stable operation of financial infrastructure.

The meeting emphasized that the People's Bank of China system must firmly uphold the 'two establishments', resolutely achieve the 'two safeguards', insist on the centralized and unified leadership of the Party Central Committee over financial work, and unswervingly follow the path of financial development with Chinese characteristics to serve Chinese-style modernization through high-quality financial development.

Editor/rice