Core Viewpoint - The Chinese financial system is resilient and can withstand external uncertainties and pressures, with a focus on self-reliance and proactive policies to maintain stability in the face of global challenges [1][5]. Group 1: Economic Resilience - China's economy is facing "triple pressures," but the financial system is solid and capable of maintaining stability [1]. - The proactive measures taken, such as controlling the pandemic and returning to normal monetary policy, have provided ample space for the financial sector to respond to uncertainties [2]. - The average annual CPI growth in China since 2018 is 2.1%, while the CPI in January 2022 was only 0.9%, indicating manageable inflation compared to developed economies [3]. Group 2: Financial Risk Management - From 2017 to 2021, China dismantled 25 trillion yuan of high-risk shadow banking and dealt with approximately 1.2 trillion yuan of non-performing assets, improving the financial risk landscape [3]. - The real estate sector, previously seen as a significant risk, has shown signs of stabilization due to effective regulatory measures [4]. - The overall financial system is robust, with sufficient capacity to handle internal and external shocks, provided no extreme external events occur [4]. Group 3: Monetary Policy and Market Stability - China's monetary policy has been cautious compared to other major economies, allowing for a stable economic environment despite global tightening [5][6]. - The recent financial data has exceeded market expectations, with new credit and social financing indicators reaching record highs in January [6]. - The "safe haven" status of RMB assets is becoming more pronounced, with foreign institutions continuing to invest heavily in Chinese bonds, expected to reach 700 to 800 billion yuan in 2022 [8]. Group 4: Currency Stability - The RMB exchange rate has remained stable amidst global market fluctuations, reflecting the strength of China's financial system [7]. - In 2021, the RMB appreciated by 2.3% against the USD, showcasing its resilience [7]. - As of January 2022, foreign institutions held 4.07 trillion yuan in the interbank bond market, indicating strong demand for RMB assets [7].