China's central bank vows to strengthen policies to support stable economic growth

China will continue to keep its monetary policy accommodative as well as strengthen counter-cyclical adjustments in order to build a sound monetary environment for stable economic growth and high-quality development, Pan Gongsheng, governor of the People's Bank of China (PBC), the country's central bank, said, sending a fresh signal to bolster the economy and stabilize confidence.

Pan made these comments in a report on the country's financial work to the ongoing 12th session of the Standing Committee of the 14th National People's Congress (NPC), China's top legislature, on Tuesday, the Xinhua News Agency reported.

Pan vowed to continue to improve financial services to support high-quality economic development, while efforts will also be made to deepen the reform and opening-up of the financial sector for the building of a modern financial system with Chinese characteristics.

In the report, Pan also underscored the need to comprehensively strengthen financial regulation, and actively and steadily dissolve financial risks to maintain the overall stability of the financial system.

At the Annual Conference of Financial Street Forum 2024 held in Beijing in October, Pan said the PBC was considering a cut of 0.25 to 0.5 percentage points in the reserve requirement ratio at an appropriate time before the end of 2024, depending on market liquidity.

On Monday, lawmakers reviewed a bill on raising ceilings on local government debt to replace existing hidden debts, Xinhua said in a separate report.

"Thanks to the rollout of incremental policies and the effect of coordinated policies, China's economy is expected to maintain stable growth in the fourth quarter, contributing to the achievement of full-year economic and social development goals," Wen Bin, chief economist at China Minsheng Bank, told the Global Times.

Foreign investors are becoming increasingly bullish on the Chinese market, bolstered by the country's recent incremental policies aimed at vitalizing growth momentum.

"We at DBS are confident in the long-term growth of the Chinese economy. China's large market size, innovative business model, and strong execution capabilities provide a solid foundation for sustained growth. Our decision to increase our investment in China is a testament to our belief in its economic future," DBS China told the Global Times on Wednesday.

This year, DBS is participating in the China International Import Expo for the seventh consecutive year. "We look forward to engaging with other exhibitors, particularly in the areas of green finance, digitalization, and AI, to jointly drive innovation and empower new quality productive forces," DBS China said.

UBS Investment Bank recently upgraded its forecast for China's real GDP growth rate for 2024 to 4.8 percent year-on-year from 4.6 percent, according to a note sent to the Global Times.