Apple News Facebook Twitter 新浪微博 Instagram YouTube Friday, May 10, 2024

China's central bank sets key tasks for 2021

(Xinhua)    10:31, January 07, 2021

BEIJING, Jan. 6 (Xinhua) -- China's central bank outlined key policies and tasks for 2021 during an annual work conference held in Beijing.

The People's Bank of China (PBOC) said Wednesday in an online statement released after the meeting that it would adhere to the general principle of pursuing progress while ensuring stability, and offer effective financial support in accelerating the construction of a new development paradigm.

The following are some key policy takeaways:

-- Implement a prudent monetary policy that is flexible, precise, reasonable and moderate

China will make the money supply and aggregate social financing grow at basically the same level as the country's nominal economic growth.

It will also deepen market-oriented reform of the exchange rates of the Chinese currency, the renminbi (RMB), and stabilize market expectations to keep the RMB's exchange rate basically stable at a reasonable and balanced level.

-- Establish mechanisms that offer effective financial support to the real economy

The country will prolong the policies on inclusive loan repayment extension and the credit loan support program for smaller businesses, and guide the financial institutions to strengthen support for technology innovation, private companies and small and micro-sized enterprises.

-- Advance green finance

To peak carbon dioxide emissions and achieve carbon neutrality, the PBOC will channel more financial resources toward green development, promote the creation of a carbon emission trading market with reasonable pricing, gradually improve the standard of green finance and continue to promote international cooperation in green finance.

-- Speed up improving the macro-prudential policy framework

China will bring major financial activities, institutions, market and infrastructures under macro-prudential management. It will also improve the supervision system of financial holding companies.

-- Prevent and defuse financial risks

Measures will be taken to enhance prudential supervision of the financial activities of internet platform companies, strengthen an anti-trust push and prevent the disorderly expansion of capital, as well as make steady improvements in inclusive finance services, the bank said.

-- Promote reform, opening-up in the financial sector

As part of efforts to promote greater reform of the financial market and financial institutions, the country will move to improve diversified channels for bond default disposal and implement a prudential management scheme for real estate finance.

It will also deepen participation in global financial governance, expand the two-way opening-up in the financial sector, promote the opening-up in the capital account in a steady and orderly manner, and keep the scale of foreign exchange reserve basically stable.

-- Prudently advance the internationalization of the RMB

China will also prudently advance the internationalization of the RMB and promote the sound and coordinated development of local and foreign currencies in onshore and offshore markets.

-- Better leverage financial technology

The bank will steadily carry out pilot programs for digital currency, encourage the use of credit reporting in digital finance and economic governance, and step up efforts for the investigation and monitoring of money laundering.

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

We Recommend

Most Read

Key Words