On April 29, the People’s Bank of China (PBC) held a meeting to convey and study the guiding principles of the meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee and of General Secretary Xi Jinping’s important speech at the 38th group study session of the Political Bureau. At the meeting, participants discussed the measures to provide financial support for keeping China’s economic indicators moving within a reasonable range and to promote the regulated and sound development of the platform economy.

It was noted at the meeting that amid Covid-19 pandemic and profound changes of a scale unseen in a century, the PBC should earnestly study and implement the CPC Central Committee’s requirements of controlling Covid-19, stabilizing the economy and safeguarding development, and stay firmly grounded in reality to ensure the full implementation of major policies of the CPC Central Committee. The PBC should speed up the targeted implementation of measures that have been set forth and make good use of monetary policy tools to keep liquidity adequate at a reasonable level, and guide financial institutions to better meet the financing needs in the real economy. The PBC will optimize financial services to help unleash the consumption potential and bolster the sustained recovery of consumption. The PBC should drive the financing of micro and small businesses (MSBs) towards “increasing volume, expanding coverage and lowering price”, support Covid-stricken industries such as foreign trade, services and civil aviation, and boost financial support for technological innovation and enterprises with specialized skills, sophisticated operation, unique products, and innovative abilities. The PBC should strive to enhance the development of supply chain finance, support the production and supply of food and energy, guarantee logistics smooth, and facilitate a stable industry and supply chains. The PBC should quicken its pace to develop policy tools aimed at boosting growth, provide support for stabilizing growth, employment and prices, and create a favorable monetary and financial environment that will coordinate the pandemic containment with economic and social development.

It was stressed at the meeting that under the strong leadership of the CPC Central Committee and the State Council, significant achievements have been made in resolutely fighting the critical battle of forestalling and defusing major financial risks, with financial risks tending to decline and generally remaining under control. The PBC should assess domestic and international situations in a scientific manner to accurately identify the key areas that may induce systemic financial risks, to further manage financial risks effectively and to firmly defend the bottom line that no systemic financial risk should occur. The PBC should support the stable operation of the capital market. Moreover, the PBC will properly implement prudential management in real estate finance and timely optimize the real estate credit policies to maintain the stable and orderly source of real estate financing that will support both the rigid demand for housing and the demand for home improvement.

It was pointed out at the meeting that the PBC should thoroughly understand and resolutely implement the guiding principles of General Secretary Xi Jinping’s important speech, summarize best practices, follow general patterns, and seek innovation to holistically improve the efficiency of capital market governance and advance the rectification of the financial business of platform companies. It should carry out financial regulation over financial activities of platform enterprises on a regular basis and promote the regulated and sound development of the platform economy.

It was required at the meeting that PBC officials at all levels should, with an increased sense of urgency and a constant sense of responsibility, make concerted efforts and take proactive actions in a tenacious and pragmatic manner, and set the stage for the 20th CPC National Congress with concrete actions.