The people's Bank of China releases China's Monetary Policy implementation report for the third quarter of 2020

SMM News: the people's Bank of China said that since the beginning of this year, the people's Bank of China has launched monetary policy measures involving 9 trillion yuan of monetary funds, and the financial sector has made a profit of about 1.25 trillion yuan to the real economy in the first 10 months.

We will improve the formation and transmission mechanism of market-oriented interest rates, continue to deepen LPR reform, consolidate the market-oriented LPR quotation mechanism, urge financial institutions to better embed LPR in loan FTP, enhance the linkage between internal and external loan pricing and LPR, promote the further decline of financing costs by means of reform, and improve the transmission efficiency of monetary policy.

In order to implement the decisions and arrangements of the CPC Central Committee and the State Council on "six stability" and "six guarantees", in accordance with the requirements of the 2020 Government work report, on June 1, 2020, the people's Bank of China created two monetary policy tools, namely, the loan extension support tool for small and Micro Enterprises and the Credit loan support Plan for small and Micro Enterprises, which go directly to the real economy, and further improve the system of structural monetary policy tools. We will strengthen financial support for stabilizing enterprises and ensuring employment.

In the next stage, we will actively improve the construction of bond market management system and promote the unification of information disclosure standards for corporate credit bonds. We will adhere to the principles of marketization and the rule of law, and improve the mechanism for preventing and disposing of bond default risks.

In the next stage, we will strengthen the overall supervision of the infrastructure of the financial market, achieve the interconnection and landing of the infrastructure of the bond market, continue to promote the construction of the custodian bank and the transaction report database, and ensure the safe, stable and efficient operation of the financial market as a whole.

The attachment is in PDF format. Please make sure that Acrobat Reader software is installed on your computer system, otherwise you may not be able to open it.

Annex: China's Monetary Policy implementation report for the third quarter of 2020. Pdf