China’s senior-most banking official has highlighted efforts to expand domestic demand via the use of targeted monetary policy.
“Steady monetary policy that is precise and vigorous must focus on expansion of effective demand and the deepening of supply-side reforms,” said Guo Shuqing (郭树清), party secretary of the Chinese central bank and chair of the China Banking and Insurance Regulatory Commission (CBIRC), in a recent interview with state-owned media.
Guo said that financial services had a critical role to play in restoring China’s economic growth and driving high-quality development, highlighting areas including:
- The active coordination of financial policy with fiscal and social policy. Using multiple channels to increase the incomes of low and medium income groups and demographics heavily affected by the pandemic, in order to satisfy their basic living requirements and increasing their consumption capacity.
- The development of a greater range of new financial products with a focus on the needs of new urban residents. Encouraging consumption of major consumer items such as residential housing and automobiles.
- Strengthening overall financial support for services consumption, in key areas including education, culture, fitness and entertainment.
- Continuing to provide investment and financing guarantees for infrastructure including energy, transit and water, while at the same time integrating more financial resources to support urban renewal and rural village revitalisation.
- The innovative application of multiple financial tools to drive improvements to investment and financing mechanisms.
- Continued optimisation of import and export trade financial services, with a focus on emerging economies and developing nations. Consolidation of new competitive advantages for foreign trade.