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China's central bank outlines financial support strategies adopted in 2024

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      China

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      China's central bank outlines financial support strategies adopted in 2024

      2025-01-14 21:44 Last Updated At:22:27

      The People's of Bank of China (PBOC), the country's central bank, outlined its financial support strategies used in the year of 2024 to help step up the country's high-quality economic development.

      Speaking at a press conference held in Beijing on Tuesday, Xuan Changneng, deputy governor of the PBOC, introduced the PBOC's supportive monetary policy throughout 2024 with four major adjustments implemented to stimulate economic recovery.

      He then said the central bank's efforts were focused on four key areas to provide financial support to high-quality economic development. First was to maintain a stable monetary and credit growth in terms of quantity, said Xuan.

      "Various monetary policy tools have been utilized to maintain adequate liquidity and to promote reasonable expansion in social financing and growth in supplies of currency and credit, and guide loan interest rates steadily downward. Last year, the reserve requirement ratio was reduced twice, totaling a decrease of 1 percentage point, alongside a 0.3 percentage point cut in the central bank's policy interest rates, which have been the most significant adjustments in recent years," said Xuan.

      The deputy governor then said the PBOC has strengthened its support for key sectors from the structural side.

      "A re-loan of 500-billion-yuan (about 68.2 billion U.S. dollars) has been established to promote sci-tech innovation and technological transformation to effectively guide financial institutions to increase their financial support to first-time borrowers of small and medium-sized tech enterprises and to technological transformation and equipment upgrade projects in key areas. By the end of last year, banks had connected with 22,000 such projects, with 838.9 billion yuan (about 114.4 billion U.S. dollars) in signed loan contracts and waiting for enterprises to withdraw at any time," said Xuan.

      "A re-loan of 300-billion-yuan (about 40.9 billion U.S. dollars) for affordable housing was launched. The lower limit on mortgage rates was removed, while efforts were made to lower mortgage rates for unsold second-hand commercial housing, which have saved borrowers approximately 150 billion yuan (about 20.5 billion U.S. dollars) in mortgage interest payments annually. Both supply and demand sides have simultaneously supported the stable and healthy development of the real estate market. Also, two capital market support tools were also introduced to effectively improve capital market expectations," Xuan added.

      He also noted that the PBOC has worked to enhance the transmission of policy rates. As for foreign exchange, the PBOC has worked to stabilize the yuan to ensure the currency remains within a reasonable range, added Xuan.

      "Overall, the monetary policy for 2024 has shown promising results. The financial output scored reasonable growth, with a year-on-year growth of 8.0 percent in social financing by December, alongside a 7.3-percent increase in broad money supply (M2) and a 7.6-percent rise in yuan loans, which all surpassed nominal economic growth rates. Besides, loan interest rates have steadily declined. In December, interest rate on new corporate loans remained at approximately 3.43 percent, down 0.36 percentage points year on year, while personal mortgage rates stayed at around 3.11 percent, a decrease of 0.88 percentage points year on year. The credit structure has also improved, with medium- and long-term loans to the manufacturing sector increasing by 11.9 percent, loans to specialized and sophisticated small and medium-sized enterprises by 13.0 percent, and inclusive loans to micro and small enterprises by 14.6 percent, which all have continued to outpace overall loan growth," said Xuan.

      He then introduced how the PBOC provides financial support contributing to this year's high-quality economic development.

      "Next, the macroeconomic policies will be further enhanced for counter-cyclical adjustments. We will adjust and optimize the intensity and pace of policies at the right time based on domestic and international economic and financial conditions, as well as the operation of financial markets, to support the achievement of the annual economic and social development goals," said Xuan.

      China's central bank outlines financial support strategies adopted in 2024

      China's central bank outlines financial support strategies adopted in 2024

      Next Article

      People across China make preparations to welcome Spring Festival

      2025-01-21 06:41 Last Updated At:07:17

      A festive atmosphere is building up as people across China have been making preparations to ring in the Spring Festival next week, with lights and decorations set everywhere, and with New Year goods markets all seeing booming sales.

      The Spring Festival, which marks the start of the Chinese Lunar New Year, is the most important annual holiday in China, when people across the country return to their hometowns for Chinese Lunar New Year celebrations and family reunion. 

      In Xi'an City of northwest China's Shaanxi Province, a grand lantern show is in its final stage of preparation before opening to the public ahead of the eve of the 2025 Chinese Lunar New Year. To be lit up on Wednesday, the large light sets presented at the event will draw numerous visitors, with lanterns that replicate 38 cultural relics as the highlight.

      Buying New Year flowers has been a custom for Chinese people. In Yancheng City of east China's Jiangsu Province, various flowers which have auspicious meanings are already in high demand.

      This year, tulips bred locally have been put on sale, and quickly become a favorable choice for many customers.  

      "I have never seen this kind of flower before. I think it is really bright-colored. Therefore, I decided to buy some to enhance the festive atmosphere at home," said Zhang Jinjian, a local resident.

      The Anchang ancient town in Shaoxing City of east China's Zhejiang Province has a time-honored custom of making aired sausages and spiced duck.

      As the Spring Festival draws near, plenty of visitors and tourists choose to purchase these local delicacies as ingredients for their Chinese New Year feast.

      "The number of tourists has been increasing, so the sales of our spiced meat have been quite good. Compared with the same period of last year, our sales is expected to increase by about 50,000 yuan (about 6,835 U.S. dollars). We will earn an additional 200,000 to 300,000 yuan (27,335 to 41,000 U.S. dollars) in sales during this whole winter," said Yang Jing, owner of a local spiced meat shop.

      In southwest China's Yunnan Province, the "Tiaocai dance" is a time-honored tradition of the Yi ethnic minority group. The dance is presented in the form of serving dishes while dancing to the rhythm. It usually happens on a joyous or grand occasion.

      Since the most significant annual festival is around the corner, Yi people have dressed up in traditional costumes, and got ready to welcome the arrival of the Chinese Lunar New Year with the special dance.  

      People across China make preparations to welcome Spring Festival

      People across China make preparations to welcome Spring Festival

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