Hong Kong Wind Information Agency Compilation

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:

• PBoC Governor Pan Gongsheng

① The central bank's share buyback and shareholding rediscount loans are specifically targeting, with the bottom line that credit funds cannot illegally enter the stock market;

② Two tools to help stabilize the capital markets are completely based on market principles, and the convenience of swaps is not direct funding support from the central bank;

③ Recently, the People's Bank of China has strengthened communication with the market multiple times on the long-term government bond yields operation, aiming to curb the systemic risks hidden behind the unilateral downward trend of long-term government bond yields caused by herd behavior;

④ It is expected that by the end of the year, depending on the market liquidity situation, there will be a further reduction in the deposit reserve ratio by 0.25-0.5 percentage points; a 0.2 percentage point reduction in the 7-day reverse repurchase operation rate of the open market; a 0.3 percentage point decrease in the medium-term lending facility rate; this morning, commercial banks have announced a reduction in deposit rates, and it is expected that the loan prime rate (LPR) announced on the 21st will also decrease by 0.2-0.25 percentage points.

China's economy has undergone profound economic structural adjustments and dynamic balance, and in the future, it needs to maintain a balance in three aspects: the balance between economic growth rate and growth quality, the balance between internal and external economy, and the dynamic balance between investment and consumption.

Further improve the monetary policy framework, with reasonable price increase as an important consideration in the target system.

• Director of the State Administration of Financial Regulation, 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.

Having risks does not mean shirking responsibility. It is necessary to promptly introduce detailed due diligence exemption rules, pinpoint responsibility accurately, exempt collectively, and encourage taking responsibilities.

Encourage financial asset management companies to support innovation. A new batch of 18 investment pilots have established relevant funds, with a total scale of approximately 250 billion yuan.

Support eligible insurance institutions to establish securities investment funds. Several insurance companies have currently submitted relevant applications.

Guide financial institutions to continuously increase financial supply, fully support the improvement of the economy. Strengthen efforts on both supply and demand sides, remove obstacles in credit distribution, and leverage the role of banks as the main force in financing, with 'good lending,' 'willing lending,' and 'daring lending' being key.

Broaden capital supplementation channels, support large banks to accelerate the supplement of core tier one capital, and expand credit growth space.

• Wu Qing, Chairman of the China Securities Regulatory Commission.

Regarding the issue of shareholder shareholding reduction, from recent trading data, there has been no clustering or illegal reduction in the past year, as well as after 924, 926; legal and compliant reduction is allowed, but illegal and circumventing reduction will be strictly cracked down upon. For recently discovered irregularities, repurchase and price differences have been required, bearing a certain responsibility.

Approval of 20 securities companies and fund companies to apply for central bank swap facilities.

Further deepen the reform of the capital markets, study and formulate deepening capital market reform plans, and deepen the capital market investment and financing reforms.

In response to issues such as pricing in the primary and secondary markets and investor protection, using typical cases as a starting point to achieve practical results.

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

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.

Further improve the coordination and development mechanism of the primary and secondary market, making the market financing scale and pace more scientifically reasonable.

• Zhu Hexin, Director of the State Administration of Foreign Exchange

Currently, there has been some improvement in foreign direct investment, with an increase in foreign capital allocation of RMB assets; in the future, the stable operation of China's foreign exchange market and the balance of international payments remain the overall tone;

In conjunction with relevant departments, we will expand the high-level opening of the bond market to the outside world.

Editor/Somer