The State Council Information Office recently held a press conference where officials from the People’s Bank of China and the State Administration of Foreign Exchange provided updates on the country’s financial situation. Deputy Governor Zhu Hexin highlighted that financing costs fell steadily in the first quarter and emphasized that there is still room for future monetary policy adjustments.
Key points discussed at the press conference included the steady growth of social financing volume, stable and declining financing costs, optimized credit structure, stable pace of credit issuance, and strong performance in the foreign exchange market. Zhu Hexin also mentioned the increasing use of RMB in global transactions and the stable RMB exchange rate against a basket of currencies.
Furthermore, Wang Chunying shared that foreign investment in domestic bonds has been on the rise, with an accumulated net increase exceeding US$40 billion since the beginning of the year. She cited supportive macroeconomic conditions, guaranteed investment value, and global demand for RMB assets as reasons for the continued growth in foreign investment.
Additionally, Zou Lan highlighted concerns about banks with scale issues and emphasized the need to strengthen monitoring of idling funds to improve efficiency in fund utilization. Meanwhile, Zhang Wenhong noted an increase in social financing scale in the first quarter, which remains at a relatively high level compared to historical data.
Overall, the officials reiterated the government’s commitment to maintaining the stability of the RMB exchange rate, improving the accessibility of the bond market to foreign investors, and addressing challenges related to fund idling and credit issuance. The announcements made at the press conference provide insight into the current state of China’s financial sector and its future direction.