Chinese central bank graphed key policies and tasks for 2020 at an annual work conference in Beijing on Thursday and Friday.
In an online statement published after the tone-setting meeting, the People's Bank of China (PBOC) mentioned that policies are intended to establish solid monetary and financial conditions in 2020, as China enters the final stage to secure a definitive win in structuring a reasonably thriving society in all aspects.
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Here are a few key policy choices:
China will reinforce its counter-cyclical adjustments and maintain in the banking system reasonably abundant liquidity.
The PBOC also emphasized market-based interest rate reform as well as advancing banks' issuance of perpetual bonds for capital replenishment.
China will continue to allow the market to play a decisive role in the formation of exchange rates and will generally stabilize the renminbi's exchange rate and keep it balanced.
China will set up and improve mechanisms for recovery, loss sharing, and financial institutions' incentives and constraints. Work to address the risks of major financial institutions will continue in accordance with laws and regulations.
The PBOC also emphasized ongoing special operations in addressing financial internet risks and making faster progress in establishing a long-term management scheme for real estate financing.
Increased financial support for systemic supply-side reform to ease the strain on small businesses, work on this front will include greater use of policy instruments including targeted reserve requirement ratio, re-lending and re-discounting to efficiently boost funding for small and micro-businesses.
Credit support to key areas and weak links will be strengthened. The PBOC will focus on areas of extreme poverty and enhance the energy of local industries with financial support to help the country win the fight against poverty.