PBoC: Will Increase Support to Real Economy as A Response to Recent Financial Market Volatility

SHANGHAI, Apr 26 – How to look at the recent volatility in financial markets? The person in charge of the People's Bank of China (PBoC) said that they are concerned about the recent fluctuations in the financial market, which are mainly the result of investors' expectations and sentiments. At present, China's economic fundamentals are solid, and the economy has great potential for endogenous growth. Substantial progress has been made in preventing and resolving financial risks.

The financial system will closely follow the decision and deployment of the Party Central Committee and the State Council, strive to reach a balance between the prevention and control of the pandemic as well as economic and social development, support the smooth operation of logistics and promote the stability of the supply chain of the industrial chain, and minimise the impact of the pandemic on economic and social development. In accordance with the principles like market-orientation, rule of law and international approach, the Bank will steadily push forward and complete the rectification of large platform companies as soon as possible to promote the healthy development of the platform economy.

The People's Bank of China will increase the support of stable monetary policy to the real economy, especially supporting industries severely affected by the pandemic as well as small and medium-sized enterprises and individual entrepreneurs, support agricultural production and energy to preserve and increase supply, and launch special refinancing loans for scientific and technological innovation and universal pensions. An additional 100 billion yuan of refinancing has been provided to support the development and use of coal and enhance energy storage, and additional refinancing is provided to support agriculture and small businesses and special refinancing for civil aviation. The goal is to maintain a reasonable abundance of liquidity, promote the healthy and stable development of the financial market and create a favourable monetary and financial environment.