Global EditionASIA 中文雙語Fran?ais
    Business
    Home / Business / Finance

    Caution in monetary policy clicks

    By ZHOU LANXU | China Daily | Updated: 2020-09-29 07:29
    Share
    Share - WeChat
    A teller counts cash at a bank branch in Hangzhou, capital of East China's Zhejiang province. [Photo by Hu Jianhuan/For China Daily]

    Prudent easing balances economic stability measures, risk prevention

    China has been "cautious "against excessive monetary easing this year to strike a balance between stabilizing the economy and preventing risks, paving the way for sustainable development amid protracted uncertainties, said a senior economist.

    Despite the shocks from the COVID-19 pandemic, China's monetary policy has managed to ensure stability on "six fronts" and security in "six areas" while keeping financial risks under control, said Li Yang, chairman of the National Institution for Finance and Development or NIFD, a Beijing-based national-level financial think tank.

    The "six fronts" and "six areas "refer to the country's priorities for the year, such as safeguarding employment and livelihood, and the development of market entities, among other key issues, to help the economy weather the COVID-19 effects.

    On the monetary front, China has enabled faster credit expansion and lent targeted financial assistance to the hard-hit small businesses. The amount of funds the real economy received from the financial system, or new social financing, came in at 3.58 trillion yuan ($524.8 billion) in August, up 1.39 trillion yuan on a yearly basis, said the People's Bank of China, the central bank.

    While the anti-crisis monetary measures have been indispensable for stabilizing the economy and employment, they may also have side-effects like increased debt and nonperforming loans, Li said.

    China's debt-to-GDP ratio of the real economy rose to 266.4 percent by the end of June, up 21 percentage points from the end of last year, according to the NIFD.

    "The country has been cautious in preventing the excessive accumulation of financial risks," he said, adding that the central bank is well on track to resolve the risks as early as possible.

    "Unlike some developed economies, China has maintained a conventional monetary policy framework with positive interest rates and a stable central bank balance sheet, leaving enough room to respond adequately to any circumstance," Li said.

    The country's latest one-year benchmark lending rate, the prime loan rate, came in at 3.85 percent this month, while the US Federal Reserve announced that it may maintain its short-term interest rates close to zero through 2023.

    Li's remarks find echo in the PBOC's second-quarter monetary policy report, which pledged to improve "cross-cyclical" policy design to achieve a balance between stabilizing growth and preventing risks in the long run.

    He said furthering capital market reforms and expediting the development of non-banking financial institutions will be critical for the nation's "dual-circulation" development pattern, which underscores improving resource allocation to empower innovation.

    The "dual-circulation" concept, whereby internal economic circulation is the mainstay while the domestic and external markets can support each other, has been one of the hottest topics among economists in recent months as it is seen as a major policy direction for China in the next few years.

    "Capital market development has become more important than ever," Li said, adding that the registration-based new share sale reform lies in at the core of capital market reforms, as it will give full play to market forces in supporting innovation.

    The country started to pilot the registration-based system on Shanghai's STAR Market last year, followed by Shenzhen's innovative startup-heavy ChiNext officially shifting to the system in August.

    "The main boards of the mainland bourses are expected to move to the registration-based system soon, transforming the market's inclination to support traditional industries to the preference of innovative firms," Li said.

    Top
    BACK TO THE TOP
    English
    Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
    License for publishing multimedia online 0108263

    Registration Number: 130349
    FOLLOW US
    CLOSE
     
    狠狠噜天天噜日日噜无码| 中文字幕在线观看有码| 精品久久久中文字幕人妻| 无码精品国产VA在线观看| 最近2019中文字幕免费大全5| 国产日韩精品中文字无码| 久久久久av无码免费网| 色婷婷综合久久久久中文 | 最近2019中文字幕一页二页| 午夜无码视频一区二区三区 | 亚洲乱码中文字幕综合| 久久久网中文字幕| 无码的免费不卡毛片视频| 无码国产精品一区二区免费式芒果 | 西西4444www大胆无码| 青青草无码免费一二三区| 东京热av人妻无码专区| 一级中文字幕免费乱码专区| 日韩中文字幕视频| 日本久久久精品中文字幕| 中文最新版地址在线| 中文字幕无码不卡免费视频| 狠狠精品久久久无码中文字幕| 日韩人妻无码中文字幕视频| 亚洲AV无码成人精品区天堂| 亚洲熟妇无码AV在线播放| 久久久无码精品亚洲日韩京东传媒| 在线中文字幕精品第5页| 久久有码中文字幕| 在线天堂资源www在线中文| 中文字幕在线观看国产| 亚洲日本中文字幕天天更新| 亚洲一区日韩高清中文字幕亚洲| 亚洲欧美中文字幕| 中文字幕手机在线观看| 中文有码vs无码人妻| 成人无码免费一区二区三区| 亚洲精品无码mv在线观看网站| 无码成A毛片免费| 国产亚洲3p无码一区二区| 日韩免费a级毛片无码a∨|