Chinese Central Bank’s Inaugural 2023 Work Meeting Calls for Deeper Reform, Greater Support for Domestic Demand

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The inaugural 2023 work meeting of the People’s Bank of China (PBOC) has highlighted a slew of policy focal points for the upcoming year, including greater reform and opening as well as an expansion in support for domestic demand.

On 4 January PBOC held its inaugural work meeting for the purpose of analysing current economic conditions and making arrangements for work in 2023.

The meeting said that key focal points for work in 2023 would include:

  1. The targeted and vigorous implementation of stable monetary policy. The comprehensive usage of multiple monetary policy tools to maintain rationally ample liquidity, and maintaining fundamental consistency between growth in the scale of the broad money supply and total social financing with nominal economic growth. The use of multiple measures to reduce financing costs for market actors. Maintaining the fundamental stability of the renminbi exchange rate at a rationally balanced level.
  2. Expanding the intensity of financial support for domestic demand and the supply system. Supporting recovery and expansion in consumption, as well as the implementation of key infrastructure projects and the development of major projects. Upholding equal treatment for enterprises irrespective of ownership and guiding financial institutions to further resolve the financing problems of private, micro-and-small enterprises. Implementation of the 16 financial measures (金融16条措施), and supporting the stable and healthy development of the real estate market.
  3. Continuing to drive the prevention and resolution of financial risk. Further employing the leadership role of the financial committee of the State Council. Improving the financial stability guarantee fund management system.
  4. Continuing to improve the macro-prudential regulatory system. Optimising mechanisms for macro-prudential pressure testing. Strengthening supervision and regulation of systemically important banks. Strengthening supervision and regulation of financial holding companies.
  5. Continuing to deepen international financial cooperation and external opening. Effectively performing G20 sustainable financial leadership work. Steadily expanding the openness of rules, regulations, administration, standards and other systems. Orderly advance of the internationalisation of the renminbi.
  6. Continuing to deepen financial reform. Continuing to improve the overall financial infrastructure regulatory framework. Strengthening normalised regulation of the financial operations of Internet platform companies. Continuing to deepen reform and opening in the area of foreign exchange.
  7. Comprehensive increase in the level of financial services and regulation. Continuing to drive financial legislation. Firmly and effectively performing financial statistical and research work. Continually raising the quality and efficiency of payment regulation. Deepening fintech applications and regulation. Strengthening renminbi cash regulation. Engaging in the orderly advance of digital renminbi trials. Continuing to raise the level of digitisation of national treasury operations. Comprehensive strengthening of the credit scoring system. Firmly undertaking anti-money laundering regulation. Strengthening protection of the rights and interests of financial consumers.