On April 22, the people’s Bank of China, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission and the State Administration of Foreign Exchange respectively conveyed, studied and implemented the spirit of the special meeting of the financial commission of the State Council, and studied and deployed the next work. The content of the meeting mentioned key topics of market concern such as capital market, monetary policy and foreign exchange reform.
Industry experts said that looking forward to the follow-up, China’s economy and finance maintain good toughness and vitality, and the long-term fundamentals will not change. The multi sectoral communication, study and implementation of the spirit of the special meeting of the financial commission of the State Council will effectively guide market expectations and boost market confidence.
actively support the smooth operation of the capital market
The CBRC proposed to actively support the smooth operation of the capital market, promote the two-way flow of capital, and attract more foreign direct investment and securities investment.
Previously, the CBRC proposed to vigorously support direct financing and promote the optimization of financing structure. Guide trust, financial management and insurance companies and other institutions to establish a long-term investment concept, carry out real professional investment and value investment, and become the backbone to promote the development of the capital market and maintain the stability of the capital market.
The CSRC stressed the need to respond to market concerns in a timely manner, guide market expectations, stimulate market vitality and potential, further improve market resilience and promote the stable and healthy operation of the capital market.
Market participants expect that in the future, the regulatory authorities will further “make moves” to enhance the market attractiveness in deepening the interconnection of domestic and foreign markets, further expanding the scope and target of investment, and strengthening regulatory cooperation.
keep prices basically stable
The people’s Bank of China proposed that the people’s Bank of China should implement prudent monetary policies, maintain reasonable and sufficient liquidity, promote the reduction of comprehensive financing costs, and provide a good monetary and financial environment for the overall prevention and control of the epidemic and economic and social development. Attach great importance to and vigorously support agricultural production and the smooth production and supply of important energy sources such as coal, oil and natural gas, and maintain basic price stability.
In terms of monetary policy, Yi Gang, governor of the people’s Bank of China, said that China will continue to implement a prudent monetary policy, and will comprehensively use a variety of tools to provide more support for small, medium-sized and micro enterprises and increase support for the real economy.
In terms of prices, Yi Gang said that the primary task of China’s monetary policy is to maintain price stability. This year, food production and energy supply are very important to price stability. Financial services attach great importance to agricultural production, as well as the production and import of coal, oil, natural gas and other important energy. As long as food production and energy supply are ensured, prices will remain stable within a reasonable range.
China Minsheng Banking Corp.Ltd(600016) chief researcher Wen Bin said that monetary policy will continue to be stable, focus on me, give consideration to both internal and external, give full play to the dual functions of aggregate and structure, increase support for the real economy and stabilize the basic economic situation. “At present, the internal and external situation is becoming more complex and changeable, which requires overall consideration, coordination and balance in the implementation of monetary policy.” He said.
increase the rescue efforts for market entities
Both the people’s Bank of China and the China Banking and Insurance Regulatory Commission have stressed support for small and micro enterprises affected by the epidemic.
The people’s Bank of China proposed to give full play to the dual functions of the total amount and structure of monetary policy, implement various financial policies and measures to stabilize enterprises and ensure employment, and focus on supporting small and micro enterprises and difficult industries and vulnerable groups affected by the epidemic.
The cbcirc stressed that it would strengthen the rescue of market players and strengthen credit support and insurance guarantee for industries and small, medium and micro enterprises greatly affected by the epidemic. Fully support the smooth freight logistics, do a solid job in financial support and energy supply, and effectively ensure the safety and stability of the industrial chain and supply chain.
Ye Yanfei, head of the Policy Research Department of the China Banking and Insurance Regulatory Commission, said that he would urge banks and insurance institutions to actively support the stable production and supply of production and living materials, especially increase financial support for agricultural production, important Shenzhen Agricultural Products Group Co.Ltd(000061) processing, warehousing and preservation cold chain logistics facilities, and continue to improve the guarantee capacity and service quality and efficiency of agricultural insurance. At the same time, it will urge the banking and insurance industry to fully support the smooth freight logistics, increase financial support and help key groups.
guide financial institutions to increase medium and long-term loans for manufacturing
The CBRC also made arrangements for the focus of follow-up financial support.
Specifically, it includes: improving the financial service level of new citizens, strengthening financial support for regions and industries that attract more new citizens, and effectively meeting the financial needs of new citizens in terms of entrepreneurship and employment, house purchase and housing, education and training, medical care and elderly care. We will cooperate with local governments in issuing special bonds and supporting project financing, and support the acceleration of major project projects and urban and rural infrastructure construction. We will improve the financial support and innovation system, guide financial institutions to increase medium – and long-term loans to manufacturing, and encourage banking and insurance institutions to better serve key core technology breakthrough enterprises and “specialized, special and new” enterprises. We will optimize financial support for key areas of consumption and promote more targeted expansion of consumption.
According to the latest data disclosed by the CBRC, from January to March, domestic loans increased by 8.6 trillion yuan, an increase of 445.5 billion yuan year-on-year. The credit structure continued to be optimized. Manufacturing loans increased significantly year-on-year, adding 1.8 trillion yuan, 1.7 times the increase in the same period last year. The loan balance of inclusive small and micro enterprises was 20.6 trillion yuan, a year-on-year increase of 22.6%, 11.5 percentage points higher than the average growth rate of various loans. The balance of loans for high-tech industries exceeded 7 trillion yuan.
promote cross-border trade and investment facilitation
In the field of foreign exchange, the safe pointed out that it is necessary to further deepen the reform and opening up in the field of foreign exchange, promote the facilitation of cross-border trade and investment, focus on small and medium-sized enterprises, optimize foreign exchange services, and implement the issued foreign exchange support policies.
In promoting the facilitation of cross-border trade and investment, the notice on doing a good job in epidemic prevention and control and financial services for economic and social development issued by the people’s Bank of China and the State Administration of foreign exchange also proposed to improve the convenience of cross-border investment and financing for investors. We will promote unified access standards for inter-bank and exchange bond markets, simplify the market entry process, and improve the capital management of foreign investors investing in the domestic bond market. Optimize the fund management of domestic bonds (Panda Bonds) issued by overseas institutions, and domestic affiliated enterprises of panda bond issuers can borrow relevant panda bond funds according to the principle of actual needs. Further facilitate qualified foreign institutional investors (QFII) and RMB qualified foreign institutional investors (rqfii) to handle the registration of domestic securities and futures investment funds.
For optimizing the foreign exchange services of small and medium-sized enterprises, Wang Chunying, deputy director of the State Administration of foreign exchange, said that it involves two aspects: first, improve the exchange rate risk management services of enterprises and reduce the cost of risk avoidance and hedging. Financial institutions are required to timely respond to the exchange rate hedging needs of foreign trade enterprises and other market entities, optimize the management and services of foreign exchange derivatives business, and improve the ability of enterprises to deal with exchange rate fluctuations. Second, optimize the cross-border business process and provide enterprises with more efficient and convenient cross-border capital settlement services. To further improve the digital level of cross-border business, banks can provide cross-border settlement services through online and paperless ways such as reviewing electronic documents.
