The People’s Bank of China said it intends to pursue a more proactive macroeconomic policy and maintain an adequate level of liquidity in the financial system, while strengthening measures to prevent systemic risks in parallel.
These priorities are set out in the People’s Bank of China’s annual Financial Stability Report, published on Friday.
In the document, the regulator noted that it will push ahead with financial support to resolve the debt risks of financial platforms, and will also tighten macroprudential management of real estate sector financing as part of efforts to prevent systemic financial risks in key industries of the economy.
The central bank also said it intends to reduce the overall social cost of financing, while preserving the decisive role of market mechanisms in determining the exchange rate of the national currency.
The policy directions were further confirmed in a statement published on the People’s Bank of China’s official website at the same time as the release of the Financial Stability Report.
