Image Source : China Visual

BEIJING, October 26 (TMTPOST) — The central bank and the State Administration of Foreign Exchange (SAFE) announced on Monday that they are going to strengthen departmental collaboration to maintain the healthy development of the financial market by following the guidance given in the first plenary session of the Twentieth Central Committee of the Communist Party of China.

Since 2012, the quality and effectiveness of financial support for the real economy have seen significant improvement. Macroeconomic policies and macro-control are taking effect, prices remain stable, the balance of payments is maintained, and the economic fundamentals are more solid. Significant breakthroughs have been made in finance reform.

Moreover, the eight risks pointed out at the Fifth National Conference on Financial Work have been significantly reduced, which refer to the risk of non-performing assets, liquidity, bond default, shadow banking, external shock, real estate bubble, government debt, and Internet finance.

The central bank will focus on critical areas to promote high-quality economic development and stabilize the macroeconomy. It will work with the SAFE to maintain reasonable growth in the total monetary credit and increase support for critical areas such as scientific and technological innovation, rural revitalization, coordinated regional development, and green development.

The session also stressed implementing a long-term loan mechanism for small and medium-sized enterprises and private enterprises to boost the economy's vitality and strengthen sectoral collaboration to maintain the healthy development of the stock market, credit market, and property market.

For the opening of the financial market, the session mentioned "bolstering a two-way opening-up of the financial market to support the prosperous development of Hong Kong as an international financial center."

Based on the current situation, the potential growth of China's economy remains at a high level. There is a great foundation for building a new development pattern with the increasingly apparent momentum of demand recovery, stable price level, high trade surplus, and stable RMB exchange rate.