State Council Report: China's Financial Markets Withstand High-Intensity External Shocks

    A report by China's State Council indicates that the country's financial markets have withstood intense external shocks, with expectations markedly improving and confidence significantly boosted.

    The “State Council Report on Financial Work” was submitted to the 14th National People's Congress Standing Committee for deliberation on the 26th. The report states that by the end of September, the stock of social financing and the balance of broad money supply (M2) grew by 8.7% and 8.4% year-on-year, respectively. The weighted average interest rate for new corporate loans in September stood at 3.14%. The implementation and transmission of monetary policy were further strengthened, liquidity remained ample, financial aggregates grew at a reasonable pace, and the cost of social financing remained at a historically low level. These factors played a positive role in boosting financial market confidence, improving social expectations, responding to external shocks, and promoting economic recovery and growth.

    According to the report, the operational and regulatory indicators of Chinese financial institutions remained within a reasonable range. The financial regulatory system was further improved. High-level opening-up of the financial sector expanded in an orderly manner. International financial cooperation continued to deepen, and the capacity to safeguard national financial security steadily strengthened.

    Regarding next steps, the report outlined six key areas: implementing and refining a moderately accommodative monetary policy to foster a suitable monetary and financial environment for consolidating and expanding the upward momentum of the economy; further strengthening and improving financial regulation to enhance its quality and effectiveness; prioritizing financial services for the real economy and focusing on providing high-quality financial services; Continuously deepen supply-side structural reforms in the financial sector; advance high-level two-way opening of the financial sector while safeguarding national financial security; prevent and defuse financial risks in key areas, ensuring the bottom line of preventing systemic financial risks is maintained.

    Regarding advancing high-level two-way opening of the financial sector, the report states that efforts will be made to steadily and prudently promote the internationalization of the renminbi, comprehensively enhancing its functions as an international currency in pricing, payments, investment and financing, and reserves.