The People's Bank of China (PBOC) held an expanded Party committee meeting chaired by Governor Pan Gongsheng and set out its priorities for implementing the 2025 government work agenda, reaffirming a “moderately loose” monetary policy stance and signalling scope for reserve requirement and interest-rate cuts when appropriate. The PBOC said it will keep liquidity ample, align social financing and money supply growth with economic growth and the expected price-level target, improve the interest-rate formation and transmission mechanism to reduce overall financing costs, and strengthen policy transparency and market communication while keeping the renminbi exchange rate basically stable at a reasonable equilibrium level. The meeting also called for greater use of structural monetary policy tools to guide financial institutions to increase support for technology finance, green finance, inclusive finance for small and micro businesses, and pension finance, and to study new tools focused on technology-innovation investment and financing, boosting consumption and stabilising foreign trade. On risk management, it highlighted expanding macroprudential and financial stability functions, supporting stable development of capital markets, continuing work to address debt risks of financing platforms, supporting market- and law-based resolution of risks at small and medium-sized financial institutions, and improving macroprudential management of real estate finance. Reform priorities include improving the central bank system, strengthening the dual-pillar framework for monetary and macroprudential policy, upgrading financial market infrastructure and the financial rule of law, advancing institutional opening of financial services and markets, and proceeding prudently with renminbi internationalisation and international financial cooperation.

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