Core Viewpoint - The construction of a comprehensive macroprudential management system will be a key focus for China's financial development during the 14th Five-Year Plan period, as highlighted in the Central Committee's suggestions for the 14th Five-Year Plan [1][5]. Summary by Relevant Sections Macroprudential Management - Macroprudential management focuses on maintaining the overall stability of the financial system and mitigating systemic risks that can spread across institutions and markets [2][3]. - It differs from monetary policy, which targets macroeconomic demand, and microprudential regulation, which focuses on the stability of individual financial institutions [1][2]. Current Economic Context - The complexity and interconnectedness of the global financial system have increased, necessitating a comprehensive macroprudential management system to prevent financial contagion [1][6]. - China's transition to a high-quality development phase requires enhanced monitoring and early warning systems for financial cycles, macro leverage ratios, and risks associated with key financial institutions and markets [6][7]. Existing Framework and Tools - China has established a macroprudential assessment (MPA) framework, which includes tools for assessing systemic importance, cross-border financing adjustments, and real estate financial management [4][6]. - The MPA effectively guides banks in rational credit allocation and risk control through multi-dimensional assessments of capital adequacy, leverage ratios, liquidity, and asset quality [4][6]. Future Directions - The People's Bank of China plans to enhance the macroprudential management toolbox by focusing on monitoring systemic risks, improving risk prevention measures for key institutions, and developing a more systematic and practical governance mechanism [7][8]. - Potential new tools may include dynamic leverage ratio tools, cross-border capital flow adjustment taxes, and mechanisms for providing liquidity support to non-bank financial institutions under specific conditions [8].

Core Viewpoint - The 2025 Financial Street Forum highlights China's proactive approach in establishing a macro-prudential policy framework post-2008 financial crisis, emphasizing the unique practices and governance mechanisms developed by the People's Bank of China (PBOC) [1][2] Group 1: Macro-Prudential Management Framework - The PBOC has strengthened centralized leadership and expanded its macro-prudential management functions [1] - In 2021, the PBOC released the "Macro-Prudential Policy Guidelines," outlining the management philosophy and policy framework [1] - The differentiated reserve requirement system was established in 2003, with a dynamic adjustment mechanism introduced in 2010, evolving into the Macro-Prudential Assessment (MPA) in 2016 to support stable growth in monetary credit [1] Group 2: Regulatory Framework and Tools - A comprehensive regulatory framework for systemically important financial institutions has been established, including guidelines and assessment methods for systemically important banks and insurance companies [1] - Tools for macro-prudential adjustment of cross-border financing have been set up to manage capital flows counter-cyclically [1] - The PBOC is exploring macro-prudential management in financial markets, focusing on monitoring bond market operations and enhancing risk alerts for financial institutions [2] Group 3: Real Estate and Market Stability - The PBOC is refining macro-prudential management in the real estate sector by dynamically adjusting mortgage down payment ratios and interest rates [2] - A regulatory framework for financial holding companies is being developed, now under the Financial Regulatory Bureau [2] - The PBOC emphasizes managing market expectations and intervening during significant market fluctuations to stabilize financial markets [2]