Pan Gongsheng, Li Yunze, Wu Qing, and Zhu Hesheng Speak Out on the Same Day, Sending a Strong Signal

    Nearly a year later, the top leaders of China's financial regulatory authorities once again appeared together at a joint press conference.

    At 3:00 PM on September 22, the State Council Information Office held a press conference under the series theme “High-Quality Implementation of the 14th Five-Year Plan.” Pan Gongsheng, Governor of the People's Bank of China; Li Yunze, Director of the China Banking and Insurance Regulatory Commission; Wu Qing, Chairman of the China Securities Regulatory Commission; and Zhu Hesheng, Deputy Governor of the People's Bank of China and Director of the State Administration of Foreign Exchange, introduced the achievements in financial sector development during the 14th Five-Year Plan period and answered questions from reporters.

    During the Q&A session, the heads of financial regulatory authorities delivered several significant messages. Key points from the press conference are summarized below.

    PBOC Governor Pan Gongsheng: Today's press conference does not involve short-term policy adjustments

    China's banking sector total assets rank first globally

    Pan Gongsheng stated that China's financial sector has achieved new major accomplishments during the 14th Five-Year Plan period.

    As of the end of June this year, China's banking sector assets reached nearly 470 trillion yuan, ranking first globally; its stock and bond markets rank second worldwide; and its foreign exchange reserves have remained the world's largest for 20 consecutive years. Concurrently, China leads globally in green finance, inclusive finance, and digital finance. It has established a multi-channel, broad-coverage, secure, and efficient cross-border RMB payment and clearing network, with mobile payments reaching internationally leading levels.

    Loans to Technology-Based SMEs Grow Over 20% Annually During 14th Five-Year Plan Period

    Pan Gongsheng noted that during the 14th Five-Year Plan period, the quality and efficiency of financial services supporting the real economy significantly improved, with annual growth rates exceeding 20% for loans to technology-based SMEs, inclusive micro-enterprise loans, and green loans.

    Today's press conference primarily outlines the development of China's financial sector during the 14th Five-Year Plan period and does not address short-term policy adjustments.

    Pan Gongsheng stated that today's press conference focused on the development of the financial sector during the 14th Five-Year Plan period, primarily reviewing and summarizing the plan from a medium-to-long-term perspective. It did not involve short-term policy adjustments. Details regarding the 15th Five-Year Plan and subsequent financial reforms will be communicated after unified central arrangements.

    Pan Gongsheng responds to the Federal Reserve's rate cut

    Responding to the Federal Reserve's rate cut, Pan Gongsheng stated that China's monetary policy adheres to a domestic-oriented approach while balancing domestic and international factors. Looking ahead, we will comprehensively employ various monetary policy tools to ensure ample liquidity based on macroeconomic conditions and evolving circumstances.

    Li Yunze, Director of the Financial Regulation Administration: Banking and Insurance Sector Assets Exceed 500 Trillion Yuan

    Over the past five years, the banking and insurance sectors have provided 170 trillion yuan in new funds to the real economy

    At the press conference, Li Yunze, Director of the Financial Regulation Administration, reported that over the past five years, the banking and insurance sectors have provided 170 trillion yuan in new funding to the real economy through various channels including loans, bonds, and equity investments. The primary financing channels have functioned effectively, with targeted and robust funding allocated to key sectors, significantly enhanced livelihood safeguards, and financial services reaching new heights.

    Data shows that over the past five years, annual average growth rates for loans to scientific research and technology, medium-to-long-term manufacturing loans, and infrastructure loans reached 27.2%, 21.7%, and 10.1%, respectively. The outstanding balance of inclusive loans to small and micro enterprises now stands at 36 trillion yuan—2.3 times the level at the end of the 13th Five-Year Plan period—with interest rates declining by 2 percentage points.

    Total assets of the banking and insurance sectors exceed 500 trillion yuan, with an average annual growth rate of nearly 9% over the past five years

    Li Yunze stated that the total assets of the banking and insurance sectors now exceed 500 trillion yuan, with an average annual growth rate of nearly 9% over the past five years, further solidifying China's position as the world's largest credit market and second-largest insurance market.

    During the 14th Five-Year Plan period, the real estate financing coordination mechanism supported housing construction and delivery.

    Li Yunze stated that during the 14th Five-Year Plan period, the Financial Regulatory Administration spearheaded the establishment of the Urban Real Estate Financing Coordination Mechanism. Loans for whitelisted projects exceeded 7 trillion yuan, supporting the construction and delivery of nearly 20 million housing units, effectively safeguarding the legitimate rights and interests of homebuyers.

    Wu Qing, Chairman of the China Securities Regulatory Commission: The resilience and risk-resistance capabilities of the A-share market have significantly strengthened.

    Listed Companies Distributed a Combined 10.6 Trillion Yuan in “Red Packets” Over Five Years

    CSRC Chairman Wu Qing highlighted that listed companies have significantly strengthened their awareness of actively rewarding investors. Over the past five years, they distributed a combined 10.6 trillion yuan in dividends and share buybacks—an increase of over 80% compared to the 13th Five-Year Plan period, equivalent to 2.07 times the amount raised through IPOs and follow-on offerings during the same period.

    Tech Sector Now Accounts for Over 1/4 of A-Share Market Capitalization

    Wu Qing noted that the technology sector now constitutes over one-quarter of the A-share market capitalization. Among the top 50 companies by market value, the number of technology firms has increased from 18 at the end of the 13th Five-Year Plan period to 24 currently.

    Medium-to-Long-Term Funds Hold 32% More A-Share Market Capitalization Than at End of 13th Five-Year Plan

    Wu Qing stated that as of the end of August this year, various medium- and long-term funds collectively held approximately 21.4 trillion yuan in A-share market capitalization, representing a 32% increase compared to the end of the 13th Five-Year Plan period.

    The resilience and risk resistance of the A-share market have significantly strengthened, with the annualized volatility of the Shanghai Composite Index at 15.9%.

    Wu Qing stated that during the 14th Five-Year Plan period, the resilience and risk resistance of the A-share market have markedly improved. The annualized volatility of the Shanghai Composite Index stands at 15.9%, a decrease of 2.8 percentage points compared to the 13th Five-Year Plan period.

    Total equity and debt financing in exchange markets reached 57.5 trillion yuan over the past five years

    Wu Qing noted that over the past five years, total equity and debt financing in exchange markets reached 57.5 trillion yuan. The proportion of direct financing has steadily increased, rising by 2.8 percentage points from the end of the 13th Five-Year Plan period to 31.6%.

    During the 14th Five-Year Plan period, the China Securities Regulatory Commission (CSRC) issued 2,214 administrative penalties, imposing fines and confiscations totaling 41.4 billion yuan

    Wu Qing noted that during the 14th Five-Year Plan period, the CSRC issued 2,214 administrative penalties for cases involving financial fraud, market manipulation, and insider trading, imposing fines and confiscations totaling 41.4 billion yuan. This represents increases of 58% and 30% respectively compared to the 13th Five-Year Plan period, further enhancing the deterrent effect of enforcement, improving transparency, and purifying the market ecosystem.

    Over 700 cases and leads transferred to public security authorities in 5 years

    Wu Qing noted that since the start of the 14th Five-Year Plan period, the CSRC has steadily advanced risk mitigation in key areas, fully leveraging legal tools to ensure strict and precise enforcement. Over the past five years, more than 700 cases and leads have been transferred to public security authorities, with a number of responsible individuals facing severe criminal prosecution.

    Zhu Hesheng, Deputy Governor of the People's Bank of China and Director of the State Administration of Foreign Exchange: China's foreign exchange reserves have remained stable above $3 trillion

    Since the start of the 14th Five-Year Plan period, China's foreign exchange reserves have consistently remained above $3 trillion.

    Zhu Hesheng, Deputy Governor of the People's Bank of China and Director of the State Administration of Foreign Exchange, stated that since the start of the 14th Five-Year Plan period, China's foreign exchange reserves have remained stable above $3 trillion, exceeding $3.2 trillion in the past two years. SAFE has continuously strengthened the management of foreign exchange reserves, ensuring asset security, liquidity, and value preservation and appreciation. Foreign exchange reserves have fully played their role as an important “stabilizer” and “ballast” for the national economy and financial system.

    Foreign institutions and individuals held over 10 trillion yuan in domestic stocks, bonds, deposits, and loans by the end of July

    Zhu Hesheng noted that since the start of the 14th Five-Year Plan period, China's balance of payments has operated more steadily. Facing a more complex and challenging external environment, China's foreign-related economy has withstood pressure and maintained stable development, with foreign trade and economic cooperation exhibiting a diversified pattern and enhanced resilience. The balance of payments remained fundamentally balanced, with the current account surplus-to-GDP ratio staying within a reasonable range. Cross-border two-way investment and financing activities were active, with foreign institutions and individuals holding over 10 trillion yuan in domestic stocks, bonds, deposits, and loans by the end of July.