Precise and powerful monetary policy, promising financial services——An interview with Guo Shuqing, Secretary of the Party Committee of the People’s Bank of China and Chairman of the China Banking and Insurance Regulatory Commission
Authoritative Interview·”Strong Confidence · Grasping Implementation”丨Accurate and Powerful Monetary Policy and Financial Services are Promising—Interview with Guo Shuqing, Secretary of the Party Committee of the People’s Bank of China and Chairman of the China Banking and Insurance Regulatory Commission
Xinhua News Agency, Beijing, January 7th, title: Precise and powerful monetary policy, financial services have great potential – Interview with Guo Shuqing, Secretary of the Party Committee of the People’s Bank of China and Chairman of the China Banking and Insurance Regulatory Commission
Xinhua News Agency reporter Wu Yu
Finance is the blood of economic development. 2023 is the first year to fully implement the spirit of the 20th National Congress of the Communist Party of China, and it is of great significance to do a good job in economic work. How will the financial measures in 2023 promote the overall improvement of economic operation? How to help high-quality development? How to deal with the risk challenges in the financial field? Guo Shuqing, Secretary of the Party Committee of the People’s Bank of China and Chairman of the China Banking and Insurance Regulatory Commission, was interviewed by a reporter from Xinhua News Agency.
Accurate and powerful monetary policy Increase support for small and micro enterprises and other fields
Question: The Central Economic Work Conference proposed to organically combine the implementation of the strategy of expanding domestic demand with the deepening of supply-side structural reforms, emphasizing “promoting the overall improvement of economic operation, achieving effective improvement in quality and reasonable growth in quantity”. How will the financial sector follow through?
answer:The basic duty of monetary policy and financial management is to maintain the normal balance of aggregate supply and aggregate demand. A sound monetary policy that is precise and powerful needs to focus on expanding effective demand and deepening supply-side reforms.
The key to rapid economic recovery and high-quality development is to convert the current total income into consumption and investment as much as possible, and financial services have great potential. First, financial policies should actively cooperate with fiscal policies and social policies, and increase the income of low- and middle-income groups and groups more affected by the epidemic through multiple channels to improve consumption capacity. Second, focus on meeting the needs of new citizens, develop more marketable financial products, and encourage the consumption of housing, automobiles and other bulk commodities. Third, strengthen comprehensive financial support for service consumption in key areas such as education, culture, sports, and entertainment. Fourth, continue to ensure the investment and financing of infrastructure such as energy, transportation, and water conservancy, and at the same time integrate more financial resources to support urban renewal and rural revitalization. Fifth, innovatively use a variety of financing tools to promote the improvement of investment and financing mechanisms in the social field, and accelerate the improvement of shortcomings in the social field. Sixth, focusing on emerging economies and developing countries, continue to optimize financial services for import and export trade such as settlement, financing, and insurance, and consolidate and expand new advantages in foreign trade competition.
On the whole, my country has a high-quality labor force, abundant capital flow, continuous improvement in technological and management innovation capabilities, and a high potential economic growth rate. With the optimization of epidemic prevention and control measures, my country’s economic growth is expected to return to the normal track soon.
Question: The Central Economic Work Conference emphasized that the “two unshakable” measures should be effectively implemented. How will the financial sector continue to support the private economy in the next step?
answer:Most of my country’s enterprises are private enterprises, and the vast majority of private enterprises are small and micro enterprises. In recent years, my country has successfully embarked on an inclusive financial development path with Chinese characteristics. As of the end of last year, the balance of inclusive small and micro enterprise loans exceeded 23 trillion yuan, with an average annual growth rate of about 25% in the past five years, much higher than other countries, and loan interest rates have also continued to decline. From 2016 to 2020, the average non-performing rate of loans to small and micro enterprises is less than 3%, which is significantly better than the level of 4.81% in OECD countries. At the same time, large and medium-sized private enterprises have gradually improved in terms of access to credit and financing in the stock and bond markets. In 2022, the public offering and listing (IPO) of Chinese enterprises will rank first in the world, accounting for 50% of the funds raised.
In the next step, financial institutions will further establish the concept of “equal treatment” and treat enterprises of all types of ownership fairly and justly.
——The monetary policy will increase the inclination towards private enterprises, maintain the effective growth of total credit, and promote the reduction of comprehensive financing costs.
——On the basis of further improving financial services for private small and micro enterprises in the manufacturing industry, increase credit and insurance protection for private enterprises and individual industrial and commercial households in the service industry.
—— Enrich the financing channels of private enterprises and support them to obtain more financial resources through the issuance of stocks and bonds.
——Promote the healthy development of Internet platform enterprises. The special rectification of the financial business of 14 platform companies has been basically completed, and a few remaining problems are also being resolved promptly. In the follow-up, normalized supervision will be implemented to encourage platform companies to operate in compliance with regulations, and to show their talents in leading development, creating jobs, and international competition.