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China's financial industry in smooth operation: official

(Xinhua)    10:29, August 14, 2020

China's financial industry has been steadily operating with generally controllable risks, Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission (CBIRC) told Xinhua in an interview.

"Stock, bond and foreign exchange markets in the country have shown strong resilience and anti-risk capability since the outbreak of the epidemic," Guo said, adding that attention should be paid to some potential risks including mounting pressure from non-performing assets.

Guo pledged that the country will intensify efforts on loan risk assessment, disposal of non-performing loans and risk management for banks.

Due to the blow of the epidemic on economic activities, the rebound of non-performing loans is inevitable, Guo said, adding fiscal, financial, employment and industrial policies should be combined to help enterprises tide over difficulties.

"Monetary and financial policies have played an important role in the positive growth of the country's economy in the second quarter," Guo said.

This year, China has lowered the average reserve requirement ratio three times while providing financial institutions with 1.8 trillion yuan (about 259 billion U.S. dollars) worth of re-lending and rediscount quotas, which effectively cranked up the development of the economy, Guo said.

In the first half of this year, China's new yuan-denominated loans expanded to 12.09 trillion yuan, up 2.42 trillion yuan year on year, and new loans for the manufacturing sector hit a record high with improving structure.

Improvements were also seen in direct financing channels, Guo said, citing that in the same period, corporate bond investment of the banking sector rose 28.5 percent year on year, while bond investment of the insurance sector rose 16.5 percent from one year earlier.

Inclusive service for small and micro enterprises will be given priority, Guo said. Financial institutions should more actively participate in bond and other capital markets so that enterprises can get long-term funds at a lower cost.

Guo also said the country will fully implement 34 measures rolled out in the past two years to deepen the opening-up of the financial sector, citing the debut of the first wholly foreign-funded insurance holding company earlier this year.

"China's policy to open up its financial sector remains unchanged," Guo said, noting that more foreign financial institutions have settled in China even during the epidemic.

The country will deepen key reforms in the financial industry, including accelerating reforms of small and medium-sized banks, ramping up support for direct financing and improving corporate governance of banks and insurers.

Guo also spoke of the need to encourage financial institutions including trust companies, money managers and insurers to establish value investment concepts to maintain stable development of the capital market. 

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Web editor: Xian Jiangnan, Bianji)

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