FINANCIAL STREET(SZ:000402) Xin Hua Cai Jing·2025-10-28 13:17Core Viewpoint - The People's Bank of China (PBOC) has reported significant progress in financial work since November 2024, emphasizing the importance of a stable monetary policy to support the real economy and enhance financial services [1][2]. Monetary Policy Execution - The PBOC has implemented a moderately loose monetary policy since 2025, including measures such as reserve requirement ratio (RRR) cuts and interest rate reductions to support technology innovation, consumption, small and micro enterprises, and stabilize foreign trade [1][2]. - As of September 2025, loans in key sectors such as technology, green finance, and digital economy have seen substantial year-on-year growth rates, with technology loans increasing by 11.8% and green loans by 22.9% [2]. Financial Market Stability - The Chinese financial market has withstood significant external shocks, with improved expectations and confidence among market participants [1][2]. - The PBOC has explored various monetary policy tools to maintain market stability, particularly during the global financial market turbulence in April 2025 [1]. Financial Reform and Opening Up - A comprehensive cross-border payment system for the Renminbi has been established, with the currency becoming the largest for cross-border payments in China and ranking among the top three globally for trade financing [2]. - The PBOC is committed to enhancing international financial cooperation and maintaining national financial security [2]. Risk Management - The PBOC has utilized mergers, market exits, and other strategies to reform and mitigate risks in small and medium-sized financial institutions, resulting in a significant reduction in the number of financing platforms and their debt levels [2]. Future Work Considerations - The PBOC plans to continue implementing a moderately loose monetary policy and enhance financial regulation to improve the quality of financial services [3][4]. - There is a focus on providing high-quality financial services to key sectors, including technology innovation and small enterprises, while ensuring policy coordination across fiscal, monetary, and industrial domains [3][4]. Structural Reforms - The PBOC aims to deepen supply-side structural reforms in finance, improve the central bank's system, and enhance the macro-prudential management framework [4][5]. - Efforts will be made to promote the internationalization of the Renminbi and maintain financial security through systematic monitoring and risk assessment [4][5].