On January 4-5, the 2024 People's Bank of China Work Conference was held in Beijing. The meeting thoroughly implemented the spirit of the Central Economic Work Conference and the Central Financial Work Conference, summarized the work in 2023, analyzed the current situation, and deployed the work in 2024. Pan Gongsheng, secretary of the party committee and governor of the People's Bank of China, attended and spoke at the meeting. Zhu Hexin, Zhang Qingsong, Xuan Changneng, and Lu Lei, members of the party committee and vice governors of the People's Bank of China, attended the meeting, and Qu Jishan, head of the discipline inspection and supervision group of the Central Discipline Inspection Commission and the State Supervision Commission in the People's Bank of China and member of the party committee, presided over the meeting. Zhou Xiaoying, deputy head of the 18th Circuit Guidance Group of the Central Committee of Theme Education, attended the meeting for guidance.
The meeting pointed out that in 2023, the People's Bank of China will resolutely implement the decisions and arrangements of the Party Central Committee and the State Council, strengthen counter-cyclical adjustment in a timely manner, effectively prevent and control financial risks, continue to deepen financial reform, continuously expand financial opening, effectively improve financial services, steadily promote institutional reform, comprehensively strengthen party building, and achieve new progress and new results in all work.
The meeting pointed out that the tasks in 2024 are arduous and arduous. The People's Bank of China system should firmly support the "two establishments", resolutely achieve the "two safeguards", take the initiative to overcome difficulties, conscientiously implement the decisions and arrangements of the Party Central Committee and the State Council, and make every effort to promote high-quality financial development.
The central bank meeting emphasized that it will focus on ten tasks in 2024
The first is to continue to promote the comprehensive and strict governance of the Do a solid job in the central inspection and rectification, conscientiously rectify the problems pointed out by the economic responsibility audit, and ensure the quality and effectiveness of the rectification.
Second, the prudent monetary policy is flexible, moderate, precise and effective. We should make comprehensive use of a variety of monetary policy tools to maintain reasonable and sufficient liquidity, and promote the matching of the scale of social financing and money supply with the expected targets of economic growth and price levels.
The third is to focus on the "five major articles" to support key areas and weak links. Implement the action plan to increase efforts to support the financing of science and technology enterprises. Continue to implement carbon reduction support tools. Continue to implement special re-lending for inclusive pension.
Fourth, we will continue to strengthen the construction of the financial market. We will build a standardized, transparent, open, dynamic and resilient financial market, further optimize the financing structure, market system and product system, and provide higher quality and more efficient financing services for the development of the real economy.
Fifth, we will steadily promote the prevention and resolution of financial risks in key areas. We should do a good job in the implementation of various policies such as the "16 Financial Measures" and financial support for the construction of affordable housing, the construction of public infrastructure for "flat and emergency purposes", and the transformation of urban villages.
Sixth, we should actively participate in international financial governance, deepen international financial cooperation, and promote high-level opening-up. Relying on platforms such as the G20, the International Monetary Fund and the Bank for International Settlements, we will promote global macro policy coordination.
Seventh, we will steadily and steadily promote the internationalization of the RMB. We will further improve the policy system to facilitate the cross-border use of RMB, and promote the use of RMB by key enterprises, key sectors and key regions. Optimize the layout of RMB clearing banks, strengthen international currency cooperation, and promote the healthy development of the offshore RMB market.
Eighth, we will continue to deepen financial reform. Deepen the reform of financial institutions and promote the construction of a modern financial system with Chinese characteristics. Support the replenishment of the capital of commercial banks, and implement the reform plan for the business classification and subdivision of policy-based development financial institutions.
Nine is to continue to improve the level of financial services and management. Guide key banks and payment institutions to optimize account services for mainland residents and overseas visitors to China. Steadily promote the R&D and application of digital yuan.
Tenth, we will solidly promote institutional reform and business process optimization and reengineering. Implement the branch reform plan, and coordinate and promote business process reengineering, information system upgrading, and system and mechanism adjustment.
Ensure that the scale of social financing can grow at a sustained and rapid pace throughout the year
The meeting emphasized that it is necessary to implement the deployment of the Central Economic Work Conference, adhere to the principle of seeking progress while maintaining stability, promoting stability with progress, establishing first and then breaking down, strengthening counter-cyclical and cross-cyclical adjustment, and constantly consolidating the foundation for stability and improvement.
The meeting clarified the ten tasks to be focused on in 2024, including the deployment of monetary policy, support for key areas and weak links, RMB internationalization and deepening financial reform.
In terms of monetary policy, we will make comprehensive use of a variety of monetary policy tools this year to maintain reasonable and abundant liquidity, and promote the matching of the scale of social financing and money supply with the expected targets of economic growth and price levels. Pay attention to the balanced allocation of new credit, improve the efficiency of the use of existing funds, further optimize the credit structure, and ensure that the scale of social financing can grow sustainably and rapidly throughout the year. In terms of prices, we will take into account the balance between internal and external, continue to deepen the market-oriented reform of interest rates, and promote the steady and moderate decline of comprehensive social financing costs. Maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.
In terms of supporting key areas and weak links, this year will implement the action plan to increase support for the financing of science and technology enterprises. Continue to implement carbon reduction support tools. We will continue to give full play to the role of supporting agriculture and small enterprises in re-lending, re-discounting, and supporting the long-term mechanism of inclusive finance with inclusive small and micro loan support tools. We should do a good job in the implementation of 25 measures for financial support for the private economy. Continue to do a good job in financial services for the comprehensive revitalization of rural areas. Continue to implement special re-lending for inclusive pension.
In terms of promoting the internationalization of the RMB, we will further improve the policy system to facilitate the cross-border use of the RMB this year, and promote the use of RMB by key enterprises, key sectors and key regions. Optimize the layout of RMB clearing banks, strengthen international currency cooperation, and promote the healthy development of the offshore RMB market. Strengthen the supervision of cross-border RMB business. Intensify the construction and expansion of cross-border payment systems.
In terms of continuing to deepen financial reform, this year we will further improve the macro-prudential policy framework and governance mechanism, continue to optimize the macro-prudential stress testing mechanism, and improve macro-prudential management in key areas. Deepen the reform of financial institutions and promote the construction of a modern financial system with Chinese characteristics. Support the replenishment of the capital of commercial banks, and implement the reform plan for the business classification and subdivision of policy-based development financial institutions.
Promote cross-border trade, investment and financing facilitation
From January 4 to 5, the 2024 National Foreign Exchange Management Work Conference was held in Beijing. The meeting conscientiously studied and Xi implemented the spirit of the Central Economic Work Conference and the Central Financial Work Conference, summarized the foreign exchange management work in 2023, analyzed the current financial and foreign exchange situation, and studied and deployed the key work in 2024. Zhu Hexin, Secretary of the Party Leadership Group and Director of the State Administration of Foreign Exchange, made a new work report. Members of the Party Leadership Group, Deputy Director General and Chief Economist of the State Administration of Foreign Exchange attended the meeting. Zhou Xiaoying, deputy head of the 18th Circuit Guidance Group of the Central Committee of Theme Education, attended the meeting for guidance.
The meeting emphasized that in 2024, the foreign exchange management work should steadily promote the in-depth reform and high-level opening up of the foreign exchange field, promote the facilitation of cross-border trade and investment and financing, strengthen the two-in-one management of "macro-prudential + micro-supervision" in the foreign exchange market, ensure the safety, flow, preservation and appreciation of foreign exchange reserve assets, and promote Chinese-style modernization with the high-quality development of foreign exchange management.
The meeting deployed the key tasks of foreign exchange management in 2024:
First, it is necessary to uphold and strengthen the centralized and unified leadership of the CPC Central Committee over financial and foreign exchange work.
The second is to deepen the reform and opening up in the field of foreign exchange to better serve the high-quality development of the real economy. Focusing on supporting scientific and technological innovation and micro, small and medium-sized enterprises, we will enhance the facilitation of cross-border trade and investment and financing. Expand the coverage of policies to facilitate foreign exchange receipts and payments for high-quality enterprises, and promote the standardized, innovative development of new forms of trade. We will improve the pilot project of integrated capital pooling of domestic and foreign currencies for multinational companies, steadily promote the two-way opening of the financial market, and strive to improve the quality of capital account opening. We will build an open, diversified, functional, competitive and orderly foreign exchange market, and continue to improve corporate exchange rate risk management services. Support the construction of key regions such as the Hainan Free Trade Port and the Guangdong-Hong Kong-Macao Greater Bay Area, and support the construction of high-level pilot free trade zones.
The third is to guard against the risk of cross-border capital flows. Strengthen macro-prudential management and expected guidance, improve the monitoring, early warning and response mechanism for cross-border capital flows, resolutely correct pro-cyclical and unilateral behavior, maintain the basic stability of the RMB exchange rate at a reasonable and balanced level, and maintain the basic balance of payments.
Fourth, strengthen the full coverage of supervision in the field of foreign exchange. Comprehensively supervise foreign exchange business in accordance with the law, strengthen normalized supervision, and use scientific and technological supervision methods to improve regulatory efficiency. We will improve the cross-border transaction management mechanism that is "substantive, diverse, due diligence and exemption from liability, safe and efficient", steadily promote the reform of banks' foreign exchange business, and severely crack down on illegal foreign exchange activities.
Fifth, improve the operation and management of foreign exchange reserves with Chinese characteristics, and ensure the safety, liquidity, preservation and appreciation of foreign exchange reserve assets.
Sixth, it is necessary to consolidate the basic work of foreign exchange management. Strengthen the construction of the rule of law in foreign exchange management, accelerate the construction of a modern balance of payments statistics system, take the opportunity of institutional reform to comprehensively optimize the business processes of foreign exchange bureaus, explore the construction of "smart foreign exchange management", and carry out research on key foreign exchange topics.