One of China’s top financial authorities has just convened a meeting on policy arrangements in the wake of significant easing of the COVID-19 lockdown.
The Financial Stability and Development Committee (金融稳定发展委员会) (FSDC) under China’s State Council convened its 25th meeting 7 April, for the purpose of “outlining five key missions for the next stage.”
These “five key missions” include:
- Expanding macro-economic policy vigour – stabilisation of monetary policy requires greater flexibility, and placing support for the real economy and recovery of growth in an even more prominent position.
- Guiding credit funds to support micro, small and medium-sized enterprises and private enterprise,
- Effectively employing the pivotal function of capital markets – continually strengthen the establishment of fundamental systems, firmly strike against various forms of fraud and fabrication, loosen and cancel regulatory systems that are unsuitable for growth, increase the activity of the market,
- Raising the actual strength of small and medium-sized banks via multiple effective methods – strengthen their ability to resist risk and extend loans,
- Prevent external risk from being transmitted internally – give greater attention to the international pandemic and economic and financial circumstances, and researching responses.