2020-08-04 10:40 Source: People's Bank of China website

On August 3, the People's Bank of China held a video conference for the second half of 2020 to convey and study the important arrangements of the Party Central Committee and the State Council on economic and financial work, summarize the work in the first half of the year, analyze the economic and financial situation, and make arrangements for key tasks in the second half of the year. Yi Gang, the governor of the People's Bank of China, made a work report, and Guo Shuqing, secretary of the Party Committee of the People's Bank of China, chaired the meeting and made a summary. People’s Bank of China Party Committee members and vice presidents Chen Yulu, Pan Gongsheng, Fan Yifei, and Liu Guoqiang; Xu Jiaai，People’s Bank of China Party Committee members and dispatched disciplinary inspection and supervision team leader; members of the foreign exchange bureau’s leadership team attended the meeting.

The meeting held that since 2020, confronting with the sudden impact of the new coronavirus pandemic and the complex and severe domestic and foreign situations, the People’s Bank of China has been guided by Xi Jinping’s thought on Socialism with Chinese Characteristics for a New Era, and has conscientiously implemented the arrangements of the Party Central Committee and the State Council in accordance with the State Council’s the financial committee’s overall guidance, focusing on the response to the pandemic, resolutely intensified the counter-cyclical adjustment of monetary policy, maintained the stability of the financial market, prevented and resolved major financial risks, further deepened financial reform and opening up, innovated financial services, and made every effort to do the “six guarantee” and “six stability”, The work of “protection” has provided strong support for the rapid recovery of the national economy.

First is to decisively increase counter-cyclical adjustments and implement prudent monetary policy more flexibly and appropriately. Timely innovate monetary policy tools, expand total volume, ensure supply, promote growth, lower interest rates, adjust structure, and protect the main body, and do everything possible to alleviate corporate financing difficulties and expensive financing. In the first half of the year, the reserve requirement ratio was reduced three times. In accordance with the needs of emergency response to pandemic prevention and control, support for resumption of work and production, and protection of market players, we will provide 300 billion, 500 billion, and 1 trillion re-loans and discounts in stages and gradients. Expanding large banks and policy banks' credit supply, supporting the expansion of corporate credit bond issuance, and maintaining reasonable and abundant financial market liquidity. At the end of June, the scale of broad money M2 and social financing increased by 11.1% and 12.8% year-on-year respectively, which was significantly higher than the same period last year; RMB 12.1 trillion was newly added in the first half of the year, an increase of 2.4 trillion yuan year-on-year. Comprehensive use of a variety of monetary policy tools to guide the decline of financial market interest rates, to promote the financial system to transfer profits to enterprises throughout the year, and promote the inclusive of small and micro enterprises, private enterprises, manufacturing and other key areas of loan interest rates have dropped to record lows. The average interest rate of newly issued inclusive small and micro loans in June was 5.08%, a decrease of 80 basis points from the end of last year.

Second, the directness and accuracy of financial policies have been significantly improved. In accordance with the mission targets set in the “Government Work Report”, on June 1st, it was released in a timely manner and carefully organized to implement two direct tools to support the deferred repayment of enterprises and the expansion of credit loans, and further extend the deferred principal and interest payment period for small, medium and micro enterprise loans to 2021. At the end of March, banks, especially local corporate banks, were encouraged to apply for deferred repayment of inclusive small and micro loans, expanded inclusive small and micro-enterprise credit loans, and helped enterprises, especially small, medium and micro enterprises, to tide over difficulties. At present, the two policy tools are being implemented in an orderly manner, with initial results.

The third is to prevent and resolve major financial risks and have achieved significant phased results. Baoshang Bank's risk disposal was basically completed, and Mongolian Commercial Bank was established and opened. The risk disposal of the “Huaxin Department” is basically completed. The financial restructuring and capital increase and share expansion plans of Bank of Jinzhou, Bank of Harbin and Bank of Gansu were implemented smoothly. The reform and reorganization of Hengfeng Bank was basically completed. Strengthen overall coordination and support the China Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission to decisively take over the nine core financial institutions under the "Tomorrow Department". The progress is now smooth. The bankruptcy and reorganization of Founder Group proceeded steadily. Support commercial banks to supplement capital through the issuance of perpetual bonds and other capital instruments, combined with financial risk management, and improve the corporate governance of small and medium-sized banks. With a long-term perspective, we should take precautions and support banks to increase the disposition and provision of non-performing loans, so as to enhance the sustainability of financial support for the real economy.

Fourth, the reform and opening up of the financial industry and the continuous deepening of international financial cooperation. The coordination of financial supervision has been continuously strengthened, and the local coordination mechanism of the Financial Committee Office has been improved. The key macro-prudential management tasks such as the supervision of financial holding companies, the evaluation of systemically important banks, and the overall supervision of financial infrastructure have been steadily advanced. Actively carry out international cooperation in the financial field to fight the pandemic. Cancel the investment quota restrictions for qualified foreign institutional investors. The function of renminbi pricing and settlement has made new progress, and renminbi assets have become important investment targets.

Fifth, financial service management continues to innovate and develop. Focusing on the prevention and control of the pandemic, the “green channel” for financial services such as payment and settlement, technological guarantee, cash issuance, treasury funds allocation, credit investigation, bond issuance, and foreign exchange management has been opened in time to ensure uninterrupted financial services. Financial support for targeted poverty alleviation achieved remarkable results. The comprehensive statistical work of the financial industry was coordinated and advanced, and the financial basic data center was officially opened. The protection of financial consumer rights has been further strengthened. Significant progress has been made in the construction of a green finance standard system. Anti-money laundering supervision has been steadily advanced. Pilot projects for large-sum cash management. The closed pilot of legal digital currency was successfully launched. The financial support of the Hainan Free Trade Port, the Guangdong-Hong Kong-Macao Greater Bay Area, and the construction of the Shanghai International Financial Center and other major national regional development strategies have achieved positive results.

The meeting pointed out that since this year, party organizations, cadres and employees at all levels throughout the system have continuously strengthened the to maintain political integrity, think in big-picture terms, follow the leadership core, and keep in alignment, strengthened the confidence in the path, theory, system, and culture of socialism with Chinese characteristics, resolutely achieved the "two maintenance", and implemented the original mission with practical actions, At the same time of prevention and control of the pandemic, we are united as one, stick to the post, rely on financial support for pandemic prevention and control as the mainline, go all out to protect the market players, and withstand the test at the critical moment.

The meeting requested that in the second half of 2020, the People’s Bank of China must fully implement the decisions and deployments of the Party Central Committee and the State Council, adhere to the general tone of the work of seeking progress, adhere to the new development concept, and focus on supply-side structural reforms, and do a good Work stably", fully implement the "six guarantees" task, adhere to a moderate and reasonable growth in total volume, focus on stabilizing enterprises to ensure employment, prevent and resolve major financial risks, accelerate the deepening of financial reform and opening up, and promote healthy economic and financial development.

First, the monetary policy should be more flexible, appropriate, and precise, and the policies that have been introduced to stabilize enterprises to ensure employment are effectively implemented. Comprehensive use of multiple monetary policy tools to guide the growth of broad money supply and the scale of social financing is significantly higher than last year. At the same time, attention should be paid to grasping the rhythm, optimizing the structure, and promoting the substantial growth of inclusive small and micro-enterprise loans and long-term manufacturing loans. Focus on the implementation of the 1 trillion-yuan re-loan and rediscount policy and the two direct tools, which should be extended to the extent possible to include as many small and micro enterprises as possible affected by the pandemic into the scope of support. At the same time, it adheres to the principle of marketization, respects the right of commercial banks to operate independently, supports policies without adding rigid requirements, and eliminates the worries and worries of small and micro-enterprises. Grasp the staged supervision and evaluation and acceptance, promote the obvious reduction of corporate financing costs, and effectively promote the financial system to transfer profits to enterprises.

The second is to maintain the bottom line and continue to fight for the three-year battle to prevent and resolve major financial risks. Continue to follow the established arrangements of the Party Central Committee and the State Council, as well as the specific requirements of the Financial Committee, to promote the three-year tackling battle to end as scheduled and to normalize risk prevention and control and risk management. Accelerate the completion of shortcomings in the financial risk management system, and improve the emergency response mechanism for major financial risks. Implement the accountability requirements of the Financial Committee of the State Council, implement accountability for the formation and handling of major financial risks, and further consolidate the responsibilities of all parties. Strengthen the protection of financial consumption rights. Strengthen risk monitoring and evaluation, and pay close attention to the marginal changes of financial risks. Give full play to the role of the deposit insurance system.

The third is to unswervingly promote the steady and orderly opening of the financial industry. Continue to implement the announced financial opening measures. Promote the full implementation of the pre-access national treatment plus negative list system. Actively and steadily promote RMB internationalization and capital account convertibility, and unify foreign exchange management policies for the bond market opening up. Deeply participate in global financial governance and earnestly safeguard multilateralism.

Fourth, continue to deepen the reform of the financial sector's system and mechanism. Earnestly fulfill the responsibilities of the Office of the Financial Committee, and promote the implementation of various financial reform measures that have been introduced. To support local governments to resolve regional financial risks as their goal, do what they can to deepen the market-oriented reform of rural financial institutions. In promoting reforms, it is necessary to maintain the overall stability of the legal person status of rural financial institutions in the county and maintain the integrity of country's financial organization system. Promote capital replenishment of small and medium banks, focusing on increasing support for small and medium banks to issue capital supplement bonds. Deepen the reform of development policy financial institutions. Continue to take the lead in promoting key legislation in the financial industry and deepen the business reform.

Fifth, continue to do a good job in financial management and financial services. Coordinate and do a good job in financial poverty alleviation at the closing stage. Carefully organize and draft the "14th Five-Year" financial reform and development plan. Deepen the pilot projects of green finance, inclusive finance, and technology innovation finance. Improve the statistical system of local financial organizations. Promote the construction of a modern central bank accounting and financial system. We will steadily and prudently advance the pilot program of combining domestic and foreign currency bank accounts. Accelerate the improvement of the financial technology regulatory framework. Improve the quality of treasury accounting. Promote the interconnection of credit information. Effectively carry out anti-money laundering supervision, investigation, monitoring and analysis in accordance with the law. Actively and steadily promote the research and development of legal digital currency. Accelerate the establishment of a transaction reporting system and a total transaction reporting database covering the entire market.

The meeting emphasized that the People's Bank of China must continue to do a good job in party building, adhere to the party's centralized and unified leadership over financial work, continuously enhance the awareness of political institutions, and resolutely achieve the "two maintenance." Taking the opportunity of the establishment of a model organization, we will vigorously promote the standardized development of party-building at all levels. Establish the concept of "financiers must also become politicians", thoroughly implement the "two responsibilities", and promote the construction of a mechanism that dares not, cannot, and does not want to be corrupted, and strictly governs the party. Insist on combining party building work with professional work, and use the performance of duties to test the effectiveness of comprehensive and strict governance of the party. The tasks listed in the "military order" must be resolutely completed. Attach great importance to the work of cadres, especially the training of young cadres, to provide strong political and organizational guarantees for the central bank to perform its duties.

Responsible comrades of various departments, branches, enterprises, institutions, and relevant units of the People's Bank of China attended the meeting in the main and branch venues.