Home » People’s Bank of China Governor Yi Gang: Give full play to financial functions to enhance economic development resilience |

People’s Bank of China Governor Yi Gang: Give full play to financial functions to enhance economic development resilience |

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Original Title: Yi Gang, Governor of the People’s Bank of China: Give Full Play to Financial Functions to Improve Economic Development Resilience

◎Reporter Fan Zimeng

On October 20, the Governor of the People’s Bank of China Yi Gang in 2021Financial StreetA speech delivered at the forum’s annual meeting stated that the combination of financial functions and market mechanisms can continuously enhance market resilience and at the same time improve the efficiency of market allocation of resources, so that resources can flow to the most competitive enterprises in all fields.

Yi Gang said that in the socialist market economy, China has hundreds of millions of market entities with clear property rights. These market players have provided inexhaustible impetus for the continuous development of our country’s economy. When the economy is under external shocks, these market players also show strong resilience.

In terms of financial policies, last year the People’s Bank of China successively introduced monetary and credit policies of 300 billion yuan, 500 billion yuan, and 1,000 billion yuan to support market players. Support the development of small, medium and micro enterprises. Yi Gang said that these monetary and credit policies, including fiscal and other policies, can effectively reach hundreds of millions of market entities under the socialist market economy system, stimulate their vitality and resilience, and take good care of market entities themselves and employees at the same time. , And strive to create wealth for the society.

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“Our country has favorable conditions such as large economic scale, complete economic structure, continuous acceleration of technological innovation, and continuous release of reform dividends. Especially with the advantages of the socialist market economy system and mechanism, economic resilience will definitely continue to strengthen.” Yi Gang said.

Yi Gang pointed out that under the socialist market economic system, the main role and function of finance is to better allocate financial resources, while continuously providing market entities with financial services such as risk management.

“Financial allocation of resources is mainly through pricing, so that financial resources such as loans, bonds, stock issuance, insurance, etc., continue to flow to competitive enterprises, so that various market entities, including small and micro enterprises, can obtain financing and achieve healthy development. “Yi Gang believes that in this process, the financial market will further discover and adjust prices. In recent years, through the continuous adjustment of prices, the financing costs of market entities have been reduced, which is conducive to continuing to solve the eternal problem of financing difficulties and financing, and financial inclusiveness has also been improved.

Yi Gang pointed out that various financial products are constantly diversifying and managing risks when allocating resources and discovering prices. By providing financial products that manage risks, finance can better serve the real economy, which is also an important function of finance.

Yi Gang believes that the combination of financial functions and market mechanisms can continuously enhance market resilience and at the same time improve the efficiency of market allocation of resources, so that resources can flow to the most competitive companies in all fields. Once a price mismatch is found, the price will be adjusted quickly and the risk will be diversified, so that the entire body is dynamic, elastic, and capable of self-adjustment and self-stability.

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“In terms of total volume, we take advantage of the situation. The growth rate of money supply and social financing scale basically matches the nominal GDP growth rate. The aggregate policy is reasonable and liquidity is sufficient. In terms of structure, we follow the laws of the market. , Give full play to the guiding role of monetary and credit policy tools to support small, medium and micro enterprises and green and low-carbon development.” Yi Gang said that at present, the market entities supported by inclusive small and micro loans have exceeded 40 million. The fact that so many market players can obtain financing is a highlight of the resilience of the Chinese economy and the proactive financial actions.

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Editor in charge: Zhang Mei

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