Financial system stable overall; risks being resolved

The People's Bank of China (PBC), the country's central bank, has conducted three major monetary policy adjustments to precisely support economic growth this year, and it will continue to strengthen counter-cyclical and cross-cyclical adjustments to consolidate the economic recovery, said PBC Governor Pan Gongsheng.

China's financial system is stable overall, with risks in key sectors being resolved in an orderly fashion, Pan said in an interview with state broadcaster China Central Television on Saturday.

The central bank will make significant efforts in the areas of technology finance, green finance, inclusive finance, pension finance and digital finance, Pan said, and it will continue to promote financial opening-up by increasing the transparency, stability and predictability of relevant policies.

The third plenary session of the 20th Central Committee of the Communist Party of China pointed to efforts to deepen reform of the financial system. It said that the country will move faster to improve the central bank system and the monetary policy transmission mechanism.

Reforms outlined in the resolution adopted by the third plenum chart the direction of monetary and fiscal policies as well as industrial development policies so as to enhance social expectations, Cong Yi, a professor at the Tianjin School of Administration, told the Global Times on Sunday.

Amid the trend of interest rate cuts in major economies, it is expected that the PBC may announce cuts to interest rates or the reserve requirement ratio by the end of 2024, Wen Bin, chief economist at China Minsheng Bank, told the Global Times.

Thanks to favorable factors including a low interest rate environment, stable real estate market and policies to boost consumption, consumers' willingness to spend and borrow will gradually recover, he said.