China to moderately loosen monetary policy to further boost domestic demand, stimulate vitality

China

China to moderately loosen monetary policy to further boost domestic demand, stimulate vitality

2025-01-05 02:58 Last Updated At：15:57

China will implement a moderately loose monetary policy in 2025 to better support the real economy, focusing on expanding domestic demand, stabilizing expectations, and stimulating vitality, according to officials from the People's Bank of China (PBOC).

These measures include reducing the reserve requirement ratio and cutting interest rates as appropriate, based on domestic and international economic and financial conditions, to maintain ample liquidity and ensure steady growth in financial supply.

"We will maintain reasonable growth in financial aggregates, utilize a mix of monetary policy tools, ensure adequate liquidity, and guide financial institutions to explore effective financing needs. This aims to align the growth of social financing scale and money supply with the expected targets for economic growth and overall price levels," said Zou Lan, director of the PBOC's Monetary Policy Department, in Beijing on Friday.

The central bank will channel more financial resources into key areas for economic restructuring, transformation, and upgrading, while supporting the shift from old to new growth drivers.

"We will advance market-oriented exchange rate reform, enhanced guidance over market expectations, effectively respond to external shocks, firmly prevent the risk of exchange rate overshooting, and keep the RMB exchange rate generally stable at an adaptive, balanced level," Zou added.

Beyond monetary measures, the PBOC plans to strengthen coordination with other macroeconomic policies, such as fiscal policy, industrial policy, and regulatory measures. This integrated approach aims to ensure a consistent policy orientation that supports consumption growth and effective investment.

"The moderately loose monetary policy will be implemented effectively to expand domestic demand, stabilize expectations, and stimulate vitality. We will place greater emphasis on consumption, stabilize foreign trade and foreign investment, and assist Shanghai in playing a stronger role as an economic 'pillar,'" said Jin Penghui, director of the PBOC's Shanghai headquarters, in Beijing on Friday.

Railway connecting Hangzhou and Hong Kong begins operation

2025-01-07 01:35 Last Updated At：03:17

⁠⁠⁠⁠⁠⁠⁠The high-speed railway connecting east China's Hangzhou City of Zhejiang Province and Hong Kong was put into use on Sunday, cutting travel time between the two cities to below seven hours. Departing from Hangzhou West Station at 15:10 BJT, the G99 train passes six stations before arriving at 21:56 BJT at West Kowloon Station in Hong Kong. Passengers only need to scan their Exit and Entry Permit at the station to finish cross-boundary inspection. "It takes just over six hours to arrive in Hong Kong, which is not that long. I have my Hong Kong-Macao Entry-Exit Permit, and all I need is to scan it on the machine over the counter," said Jin Siyu, a traveler taking the first train. To further facilitate travelers on the route, Hangzhou West Station now allows passengers to extend their Entry-Exit Permit with self-service machines.

"It takes around two to three minutes to finish (the extension) on this machine. But we can only provide extension services," said Chen Na, a staff member at the police station at Hangzhou West Station Hub, under the Yuhang District branch of Hangzhou City Public Security.