Summary of the PBC Work Conference for the Second Half of 2021

According to the official website of the People’s Bank of China, on July 30, the People’s Bank of China held a work conference for the second half of 2021 to convey and study the overall judgment of the Party Central Committee and the State Council on the current economic situation and the important arrangements for economic work in the second half of the year, and summarize the first half of the year. The work of the People’s Bank of China has clarified key tasks in the second half of the year.

The following is a summary of the main content of the conference, and an excerpt from Golden Finance:

Summary and judgment:

one. The prudent monetary policy has maintained continuity, stability and sustainability, and has provided strong support for the recovery of economic stability. The total amount of money, credit and financing increased reasonably, and the real economy was supported firmly. Monetary policy tools, such as open market operations, medium-term lending facilities, and deposit reserve ratios, have been comprehensively used to maintain reasonable and sufficient liquidity. The overall financing cost has been steadily and slightly reduced, and the effectiveness of profit-making entities has been consolidated. Financial services for private small and micro enterprises continued to be optimized. Comprehensively integrate rural revitalization, and maintain the overall stability of financial assistance policies and efforts. The macro leverage ratio has stabilized and declined.

two. The green financial system has accelerated development. In accordance with the overall idea of ​​developing the basic framework of the “three major functions” and “five pillars” of green finance, we will accelerate the promotion of various green finance tasks and make progress. To study the establishment of carbon emission reduction support tools, publish a new version of the green bond support project catalog, launch carbon neutral bonds in the inter-bank market, establish an evaluation mechanism compatible with the carbon peak carbon neutral target incentives, and improve the green financial evaluation of banking financial institutions .

three. We will do a solid job in preventing and resolving financial risks. Baoshang Bank went bankrupt in accordance with the law. The assets and capital verification of 9 “Tomorrow Department” financial institutions have all been completed. The reform of Liaoning provincial city commercial banks has made progress. The debt default risks of some large private enterprises have been dealt with in an orderly manner. The State Council’s Financial Committee has implemented the accountability measures for preventing and dissolving major financial risks, and the notification system for major violations of laws and regulations, such as the bond market’s “debt evasion”.

Four. New progress was made in macro-prudential management. The macro-prudential stress testing work is progressing steadily. The “Additional Supervision Regulations for Systemically Important Banks (Trial)” has completed the public consultation for opinions, and the list of systemically important banks has been studied and drawn up. Introduced a real estate loan concentration management system.

Fives. Effectively strengthen international macro policy coordination, and orderly expand the opening up of the financial industry. Actively promote international cooperation in green finance, and deeply participate in global economic and climate governance. Actively participate in multilateral crisis prevention and relief. Continue to implement the G20 Debt Mitigation Initiative, and steadily deal with the debt problems of low-income countries. Proactively and orderly expand the opening up of the financial industry on the basis of controllable risks, fully participate in the effective implementation of the Regional Comprehensive Economic Partnership Agreement (RCEP), and systematically sort out the negative list of financial services.

six. Deepen financial reforms in key areas. Continue to prudently promote the internationalization of RMB, improve cross-border RMB business policies, and promote cross-border RMB business innovation. Reform and opening up in key areas of foreign exchange have been further accelerated. Deepen the reform of financial markets and financial institutions. A white paper on the progress of digital renminbi R&D was released, and the digital renminbi R&D pilot was steadily advanced.

seven. Promote the standardized development of platform corporate financial services, and severely crack down on illegal activities of virtual currency. Cooperate with relevant departments to resolutely implement the decisions and deployments of the Party Central Committee and the State Council on anti-monopoly and prevent the disorderly expansion of capital, interview leading platform companies engaged in financial business, and urge them to fully implement financial supervision, fair competition, and protection of the legitimate rights and interests of consumers. Requirements, in-depth self-examination and rectification should be carried out.

Eight. New breakthroughs have been made in financial legislation, services and management. A number of major legislative projects have made positive progress, the “Credit Investigation Business Management Measures” and the “Anti-Money Laundering Law (Revised Draft)” have been widely solicited for opinions, and the “Financial Consumer Rights Protection Implementation Measures” have been fully implemented. Continue to optimize the business environment, and the reform of “separation of licenses and licenses” covers the whole country. The preparation of the “14th Five-Year” financial development plan is progressing in an orderly manner. The comprehensive application of the national financial basic database has achieved positive results. Reduce the fees paid by small and micro enterprises and individual industrial and commercial households. Intensify the rectification of rejections of renminbi cash. New results have been achieved in the internal management and services of the People’s Bank of China.

The spirit of development in the second half of 2021:

one. Adhering to the principle of stability, a prudent monetary policy must be flexible, precise, reasonable and appropriate. Do a good job in cross-cycle policy design, and grasp the pace and intensity of policy implementation. Comprehensive use of a variety of monetary policy tools to maintain reasonable and abundant liquidity, guide the reasonable growth of loans, keep the money supply and the growth rate of social financing scale basically matched with the nominal economic growth rate, and keep the macro leverage ratio basically stable. Continue to deepen the reform of interest rate marketization, and promote the steady decline of actual loan interest rates. Deepen the reform of the RMB exchange rate formation mechanism and keep the RMB exchange rate basically stable at a reasonable and balanced level. Guide financial institutions to increase support for key areas and weak links such as small and micro enterprises, “agriculture, rural areas and farmers”, and manufacturing. Promote the integrated development of inclusive finance and green finance, science and innovation finance, and supply chain finance as a whole, and improve the financial support technology innovation policy system. Continue to do a good job in financial services for rural revitalization and financial assistance.

two. Overall coordination and speed up the improvement of the green financial system. Promote the implementation of carbon emission reduction support tools, provide low-cost funds to qualified financial institutions, and guide financial institutions to provide preferential interest rate financing for key areas with significant emission reduction effects. Solidly promote the disclosure of carbon emission information and green finance evaluation. Strengthen climate risk management and carry out climate risk stress tests in an orderly manner. Strengthen investigation and research on key issues of green finance.

three. Effectively prevent and resolve major financial risks. Closely monitor and investigate risk points in key areas. Implement major financial risk accountability and financial risk notification systems. Strengthen the territorial responsibility of local party and government risk disposal. Promote the reduction of the number of high-risk institutions in key provinces.

Four. Continue to strengthen macro-prudential management. Improve the macro-prudential policy framework. The macro-prudential policy guidelines will be issued in due course. Carry out macro-prudential stress tests step by step, establish a countercyclical capital buffer evaluation mechanism and carry out annual evaluations. Implement the prudential management system of real estate finance. Promote the supervision of financial holding companies. Strengthen the supervision of systemically important financial institutions.

Fives. Further promote financial opening in an orderly manner. Continue to do a good job in the implementation of the financial industry’s opening-up commitments, take the initiative to benchmark against high international standards, and promote the formation of a higher level of financial opening based on the negative list. Coordinate and coordinate national opening up, opening up pilot free trade zones, and bilateral or regional opening up through free trade agreements. Continue to promote international cooperation in green finance.

six. Deepen financial reforms in key areas. Continue to prudently promote the internationalization of the renminbi, deepen foreign currency cooperation, and develop the offshore renminbi market. Carry out high-level open-up pilots for cross-border trade and investment. We will expand the pilot program of trade balance facilitation and support more regions, especially the central and western regions, to participate in the pilot program. Promote the reform of foreign debt registration and management, and improve the management policies for domestic bond issuance by overseas institutions. Promote steadily the digital RMB research and development pilot.

seven. Supervise and guide platform companies to make comprehensive rectifications in accordance with regulatory requirements, and maintain a high pressure on virtual currency trading hype. Adhere to the same treatment for similar institutions in similar businesses, ensure that rectifications are implemented on time and quality, maintain business continuity and normal business operations, and maintain the quality of financial services to the broad masses of people. Adhere to marketization, rule of law, and internationalization, adhere to the “two unshakable”, protect property rights and intellectual property rights, and create a fair market environment.

Eight. Continue to do a good job in financial services and management. Promote important legislation in the financial industry. Deepen the reform of decentralization, management and service. Continue to do a good job in comprehensive statistics of the financial industry. Actively promote the implementation of the payment service fee reduction policy and take effect. We will do a good job in the demonstration project of financial technology empowering rural revitalization and the pilot project of comprehensive application of financial data. Implement various financial service tasks for the Beijing Winter Olympics. Deeply rectify the rejection of cash. Speed ​​up the improvement of the treasury management system and vigorously promote the construction of informatization. Promote the promulgation of the “Credit Investigation Business Management Measures” to strengthen the protection of personal data and the rights and interests of information subjects. Improve the anti-money laundering coordination mechanism. Severely crack down on acts that infringe on the legitimate rights and interests of financial consumers.

 

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