1u3001 Chinas monetary policy response is timely and effective, and the total amount is reasonable and moderate, which has created a suitable monetary and financial environment for the stable employment of market participants
Under the correct leadership of the CPC Central Committee and the State Council, Chinas economy has achieved steady recovery. In this process, under the careful guidance of the financial commission of the State Council, the steady monetary policy and the active fiscal policy cooperate with each other to do a good job of six stabilities and six guarantees, providing strong support for epidemic prevention and control and economic recovery and growth.
In terms of monetary policy, since this year, the peoples Bank of China has introduced large-scale macro hedging measures by reducing the deposit reserve ratio, refinancing and re discounting, and innovating monetary policy tools directly to the real economy. Since 2020, the peoples Bank of China has reduced the reserve ratio three times, the weighted average deposit reserve ratio has decreased by about 1 percentage point, and the reduced reserve ratio has released 1.75 trillion yuan of liquidity. Since 2018, the peoples Bank of China has reduced the reserve requirements for 10 times, the weighted average deposit reserve ratio has decreased by about 5.5 percentage points, and the accumulated liquidity has been released by 8.1 trillion yuan.
According to the stage characteristics of epidemic prevention and control and economic and social recovery and development, this years monetary policy has been introduced in different levels and gradients, with internal logic. At the beginning of the outbreak of the epidemic, the peoples Bank of China set up the first batch of 300 billion yuan special refinancing on January 31 to support banks to provide preferential interest rate loans to key enterprises of medical and living materials. After 50% discount from the government, the actual financing cost of enterprises is very low. The use of the 300 billion yuan special re loan has been managed by the list system, which has been basically used up. More than 7600 key enterprises directly involved in epidemic prevention have been given targeted support, and the task of ensuring the supply of medical and living materials has been strongly supported.
After the spread of the epidemic situation has been initially controlled and the orderly resumption of work and production, the peoples Bank of China increased the second batch of 500 billion yuan of rediscount amount on February 26. Commercial banks issued loans at a rate of no more than one-year loan market quotation rate (4.05%) plus 50 basis points, and the actual average interest rate was about 4.4%. The 500 billion yuan of refinancing and rediscount has been basically used up, supporting nearly 600000 enterprises to resume work and production.
On April 20, the peoples Bank of China increased the rediscount amount of the third batch of 1 trillion yuan of inclusive re loans to support banks to increase credit supply to agriculture related, small and micro businesses and private enterprises. The average financing cost was controlled within 5.5%, and it is expected to support more than 2 million enterprises and other market entities.
Another prominent feature of the implementation of monetary policy is that it pays attention to enhancing the directness and accuracy. In accordance with the requirements of this years government work report, the peoples Bank of China issued two monetary policy tools directly to the real economy on June 1. By providing appropriate financial support from the central bank, the peoples Bank of China has promoted banks to actively handle enterprise loans, deferred repayment of principal and interest, and credit loans for small and micro enterprises. As of the end of August, the bank has extended the loan principal of 1.57 million market entities and the loan interest of 810000 market entities, involving a total of 3.7 trillion yuan of loan principal and interest; from March to August, the bank has issued more than 30 million inclusive small and micro credit loans, totaling 1.89 trillion yuan, 630 billion yuan more than the same period of last year.
At the same time, the peoples Bank of China has done a solid job in financial support and targeted poverty alleviation to help build a moderately prosperous society in an all-round way. As of the end of June, the balance of loans for the poor and those who have been lifted out of poverty has reached nearly 750 billion yuan, benefiting more than 20 million people.
Generally speaking, the steady monetary policy has achieved positive results, and the scale of monetary credit and social financing has grown reasonably, which has strongly supported the steady recovery of the economy. At the end of September, the year-on-year growth rates of broad money supply (M2) and social financing scale were 10.9% and 13.5% respectively. In the first nine months, RMB loans increased by 16 trillion yuan, significantly higher than that in the same period of last year. The loan interest rates of inclusive small and micro enterprises, private enterprises and manufacturing industries all dropped to a record low. The credit structure has been significantly optimized, supporting more than 31 million small and micro businesses. Since the second quarter, Chinas economy has recovered month by month, with CPI rising by 1.7% year-on-year in September. Through deepening the reform of LPR, the financial management departments can promote the financial sector to make profits to the real economy by reducing loan interest rates, implementing two direct monetary policy instruments and reducing charges. It is estimated that by the end of September, more than 1.1 trillion yuan of interest has been transferred. It is expected that with the further embodiment of the effects of various policies and measures, the target of 1.5 trillion yuan of profit can be achieved in the whole year.
From the perspective of financial market, Chinas financial system has maintained stable operation in the face of the impact of the epidemic. The volatility of the stock market is small. In the first nine months, 42 trillion yuan of bonds were issued, a year-on-year increase of 25%. The foreign exchange market is stable, and the exchange rate of RMB against the US dollar has increased.
2u3001 We will adhere to a prudent monetary policy, adhere to and improve some effective structural financial policies in response to the epidemic, and help to achieve the annual development goals and tasks
Xinguan epidemic is a major public health emergency. In response to the impact, the financial sector has launched some special policies and measures. With the passing of the peak of the impact of the epidemic on Chinas economy, economic activities have gradually returned to normal, and some policies have successfully completed the phased tasks. However, the policies and measures supporting small and micro private enterprises, stable employment and green development will continue to be adhered to and further improved, so as to promote the formation of a new development pattern with the domestic large cycle as the main body and the domestic and international dual circulation promoting each other.
Second, the steady monetary policy is more flexible, moderate and accurate. Monetary policy should keep a balance between stable growth and risk prevention, neither let the market be short of money nor let money overflow from the market, and keep the money supply basically matching the growth rate of nominal GDP reflecting potential output. Implementing normal monetary policy as long as possible, maintaining a normal and upward sloping yield curve and providing positive incentives for economic entities are conducive to the sustainable development of the economy and society, the global competitiveness of RMB assets, and the use of two markets and two resources. In the special period of anti epidemic this year, the macro leverage ratio has increased. After the GDP growth rate rises next year, the macro leverage ratio will be more stable. Monetary policy needs to keep the general gate of money supply well, and properly smooth the fluctuation of macro leverage ratio, so as to keep it on a reasonable track in the long run.
In recent years, the peoples Bank of China has resolutely implemented the decision-making and deployment of the Party Central Committee and the State Council, actively supported the construction of Beijings national financial management center, and took the lead in launching the pilot project of financial science and technology innovation supervision and the pilot reform of domestic and foreign currency accounts integration, which has greatly promoted the functional construction of Beijings four centers. This year, the peoples Bank of China has increased the amount of small-scale loans for agricultural support four times and the rediscount line for three times to fully meet the needs of epidemic prevention and economic recovery and growth in Beijing.
In the next step, the peoples Bank of China will firmly implement the spirit of vice premier Liu Hes speech, continue to support Beijings construction of a comprehensive demonstration area and free trade zone for the national service industry, expand the opening up of the pilot zone, support the establishment of Zhongguancun Science and technology innovation and financial pilot zone, and make every effort to optimize the payment service environment for the Beijing Winter Olympics. Just now, Secretary Cai Qi made arrangements for the financial work in Beijing. I fully agree with it and will give full support to it.