China’s Finance Authorities Call for Optimization of Financial Services to Keep Macro-economy Stable

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China’s top financial authorities including the People’s Bank of China (PBOC), the China Securities Regulatory Commission (CSRC) and the China Banking and Insurance Regulatory Commission (CBIRC) have sent a slew of key policy signals at a series of recent meetings.

All three agencies have called for “accelerating the targeted implementation of various policies and measures that have already been confirmed,” as well as the “optimisation of financial services, guiding financial institutions to better satisfy the financial demand of the real economy, and aiding the stabilisation of the macro-economy.”

PBOC called for “supporting the unleashing of consumption potential and driving the ongoing recovery of consumption,” as well as “driving growth in micro-and-small enterprise financing, and expanding coverage and reducing costs.”

PBOC also highlighted greater financial support for tech innovation and new innovative enterprises, alongside support for the stabilisation of growth, employment and prices, and the “operation of an excellent monetary and financial environment for coordinated pandemic control and economic and social development.

CBIRC called for strengthening financial services for new urban migrants, with a particular focus on financial demand in relation to entrepreneurship and employment, housing and accommodation, education and training, and healthcare and aged care.

CBIRC said that it would guide Chinese financial institutions in “accurately grasping lending policy,” as well as strengthen financial support for industries and small businesses adversely affected by the pandemic.

The Chinese banking regulator also said that it would raise the convenience of financing while reducing overall financing costs, as well as provide support to energy prices, help to stabilise industry supply chains, and ensure the regular operation of key infrastructure.

CSRC called for “scientifically and rationally grasping IPO’s and refinancing normalisation,” as well as the diversification of bond financing tools and types, including innovative tech company bonds and collective small and medium-sized enterprise bonds.

CSRC will “actively support bond finance by real estate enterprises,” as well as expand the scope of real estate investment trust (REIT) trials for infrastructure development, and when appropriate unveil further polices and measures to support the growth of enterprises in China’s real economy.