On January 5th, the People's Bank of China announced that the 2024 Working Conference of the People's Bank of China will be held in Beijing from January 4th to January 5th. The meeting thoroughly implemented the spirit of the Central Economic Work Conference and the Central Financial Work Conference, summarized the work for 2023, analyzed the current situation, and deployed the work for 2024.

The conference on ensuring sustainable growth of social financing emphasizes the construction of a scientific and stable financial regulation system to effectively support stable economic growth and high-quality development. Establish a sound financial stability guarantee system and firmly guard the bottom line of preventing systemic financial risks. Continuously deepen the structural reform of the financial supply side, and build a modern financial system with high adaptability, competitiveness, and inclusiveness. Coordinate financial openness and security, and orderly expand high-level financial opening-up to the outside world. We must implement the deployment of the Central Economic Work Conference well, adhere to the principle of seeking progress while maintaining stability, promoting stability through progress, establishing first and then breaking through, strengthen countercyclical and cross cyclical adjustments, and continuously consolidate the foundation of stability and improvement. The meeting pointed out that a prudent monetary policy is flexible, moderate, precise, and effective. By comprehensively utilizing various monetary policy tools, maintaining reasonable and sufficient liquidity, promoting the matching of social financing scale, money supply with expected economic growth and price levels. Pay attention to the balanced allocation of new credit, improve the efficiency of using existing funds, further optimize the credit structure, and ensure the sustainable and rapid growth of social financing scale throughout the year. In terms of price, we should balance both internal and external factors, continuously deepen the market-oriented reform of interest rates, and promote the stable and moderate reduction of social comprehensive financing costs. Maintain the basic stability of the RMB exchange rate at a reasonable and balanced level. The Central Financial Work Conference pointed out five major articles on technology finance, green finance, inclusive finance, pension finance, and digital finance. This meeting also pointed out that focusing on the "five major articles" to support key areas and weak links. Implement the action plan to increase efforts to support financing for technology-based enterprises. Continue to implement carbon reduction support tools. Continue to play the role of supporting tools for agriculture, small and medium-sized loans, rediscounting, and inclusive small and micro loans in serving the long-term mechanism of inclusive finance. We will implement 25 measures to support the private economy through financial support. Continuously improve financial services for the comprehensive revitalization of rural areas. Continue to implement special refinancing for inclusive elderly care. In addition, we need to continuously strengthen the construction of financial markets. Build a standardized, transparent, open, dynamic, and resilient financial market, further optimize financing structure, market system, and product system, and provide higher quality and more efficient financing services for the development of the real economy. We will deepen the opening up of the financial market and improve the convenience for foreign investors to participate in China's bond market. Strengthen the construction and management of financial infrastructure.

02 | Promoting the resolution of risks in small and medium-sized financial institutions, continuously strengthening the construction of financial markets, steadily promoting the prevention and resolution of financial risks in key areas, continuously deepening financial reform, and continuously improving financial services and management levels are also among the key work priorities of the central bank in 2024. Regarding the resolution of financial risks, the meeting pointed out the need to steadily promote the prevention and resolution of financial risks in key areas. Guide financial institutions to use debt restructuring, replacement and other means reasonably in accordance with the principles of marketization and rule of law, and support the resolution of debt risks on financing platforms. Strengthen monitoring and analysis of the operation of the real estate market. We will implement differentiated housing credit policies accurately based on urban policies, meet the reasonable financing needs of various real estate enterprises, and ensure the implementation of various policies such as the "16 Financial Measures" and financial support for the construction of affordable housing, the construction of public infrastructure for both emergency and emergency use, and the transformation of urban villages. Promote the resolution of risks in small and medium-sized financial institutions, promote the disposal of risks in key institutions, improve early correction mechanisms with hard constraints, and strengthen the professionalization and normalization of risk disposal functions in deposit insurance. Continuously strengthen the financial stability guarantee system.

03 | The Conference on Improving the Convenience of Foreign Investors' Participation in China's Bond Market stressed that we should continue to strengthen the construction of the financial market. Build a standardized, transparent, open, dynamic, and resilient financial market, further optimize financing structure, market system, and product system, and provide higher quality and more efficient financing services for the development of the real economy. We will deepen the opening up of the financial market and improve the convenience for foreign investors to participate in China's bond market. Strengthen the construction and management of financial infrastructure. In addition, the meeting also emphasized the need to continuously improve the level of financial services and management. Accelerate the promotion of key financial legal work. Continue to do a good job in financial support for regional reform and development. Strengthen investigation and research, and improve the counselor system. Build a modern financial statistical monitoring mechanism that matches the transformation of economic structure. Efforts will be made to improve the payment service level for overseas personnel coming to China, continuously promote the optimization of the overseas bank card acceptance environment, enhance the convenience of mobile payments, and guide key banks and payment institutions to optimize the account services for Chinese residents and overseas personnel coming to China. Strengthen cash services and management, solidly carry out special actions to rectify and reject cash, and increase punishment and announcement efforts. Steadily promoting the research and application of digital RMB. Promote the integration of information technology systems in an orderly manner. Accelerate the construction of the national treasury project. Strengthen credit reporting and anti money laundering supervision.

04 | Emphasizing the balanced allocation of new credit in monetary policy, the meeting emphasized that a prudent monetary policy is flexible, moderate, precise, and effective. By comprehensively utilizing various monetary policy tools, maintaining reasonable and sufficient liquidity, promoting the matching of social financing scale, money supply with expected economic growth and price levels. Pay attention to the balanced allocation of new credit, improve the efficiency of using existing funds, further optimize the credit structure, and ensure the sustainable and rapid growth of social financing scale throughout the year. In terms of price, we should balance both internal and external factors, continuously deepen the market-oriented reform of interest rates, and promote the stable and moderate reduction of social comprehensive financing costs. Maintain the basic stability of the RMB exchange rate at a reasonable and balanced level. Focus on the "five major articles" to support key areas and weak links. Implement the action plan to increase efforts to support financing for technology-based enterprises. Continue to implement carbon reduction support tools. Continue to play the role of supporting tools for agriculture, small and medium-sized loans, rediscounting, and inclusive small and micro loans in serving the long-term mechanism of inclusive finance. We will implement 25 measures to support the private economy through financial support. Continuously improve financial services for the comprehensive revitalization of rural areas. Continue to implement special refinancing for inclusive elderly care. Focusing on the "five major articles", creating new structural tools, further enriching the policy toolbox, improving the accuracy and effectiveness of monetary policy, and supporting financial institutions to do well in science and technology innovation finance, green finance, inclusive finance, pension finance, and digital finance. It is understood that about 80% of all loans in China each year need to be recovered and reinvested to improve the efficiency of using existing funds. Revitalizing existing loans, improving the efficiency of using existing loans, and optimizing the investment direction of new loans are equally important for supporting economic growth.