The Chinese Communist Party (CCP) has issued official recommendations for the setting of economic targets for the 14th Five Year Plan (2021 – 2025).
The CCP released the “CCP Central Committee Recommendations on the Formulation of National Economic and Social Development Targets for the 14th Five Year Plan and the 2035 Vision” (中共中央关于制定国民经济和社会发展第十四个五年规划和二〇三五年远景目标的建议) on 3 November, in a document comprised of more than 2000 characters describing China’s policy priorities for the near-term.
Priority areas for the Recommendations include:
- Establishment of a modern central banking system,
- Improvements to the modern financial regulatory system,
- Improvements to monetary supply adjustment mechanisms,
- Steady progress in digital currency research and development,
- Improving market-based interest rate formation and transmission mechanisms,
- Deepening reforms of state-owned commercial banks,
- Raising the fintech level,
- Strengthening financial inclusion,
- Establishing systemic mechanisms for finance to effectively support the real economy,
- Supporting the ongoing healthy development of small and medium-sized banks and rural credit societies,
- Reform and optimisation of policy-based finance,
- Maintaining the position that houses be used for occupation and not speculation,
- Emphasising both leasing and purchase of housing equally,
- The formulation of real estate policies on a regional basis,
- Raising the share of direct financing as a percentage of overall financing,
- Comprehensive implementation of a share issuance registration system,
- Establishment of market withdrawal normalisation measures,
- Driving bilateral financial opening,
- Improvements to a modern financial regulatory system,
- Raising the level of transparency and rule by law of financial regulation,
- Improving the deposit insurance system,
- Improving the financial risk system for early prevention and early warning as well as disposal and accountability,
- Zero tolerance for legal or regulatory breaches.
