Since 2022, the People's Bank of China has conscientiously implemented the deployment of the CPC Central Committee and the State Council, strengthened the implementation of a prudent monetary policy, played the dual functions of the total amount and structure of monetary policy tools, proactively responded, worked hard to serve the real economy, and stabilized the economic market. On July 13, the State Council Information Office held a press conference. Ruan Jianhong, spokesperson of the People's Bank of China and director of the Investigation and Statistics Department, introduced that in the first half of 2022, my country's liquidity is reasonably sufficient, financial support for the real economy is strong, and the credit structure is optimized. The comprehensive financing cost of enterprises has been stable with some decline, and the quality and efficiency of financial services for the real economy have improved. First, liquidity is reasonably sufficient, and financial support for the real economy has increased. In the first half of the year, the People's Bank of China lowered the reserve ratio by 0.25 percentage points, turned over 900 billion yuan of profit from the balance, and reasonably increased the supply of liquidity. Financial institutions increased their credit support for the real economy. Second, the credit structure continued to be optimized. The People's Bank of China gave full play to the precise guiding role of structural monetary policy, launched a number of structural monetary policy tools, increased support for inclusive small and micro loans, supported the stable employment of small and medium-sized enterprises, and continuously strengthened the supervision of key areas and weak links of the national economy. strength of support. Third, the comprehensive financing cost of enterprises has been stable with some decline. In the first half of the year, the People's Bank of China continued to optimize the central bank's policy interest rate system, strengthened the supervision of deposit interest rates, and focused on stabilizing the cost of bank liabilities.

Ruan Jianhong emphasized that in the next step, the People's Bank of China will conscientiously implement the spirit of the CPC Central Committee's "epidemic must be prevented, the economy must be stabilized, and development must be safe", adhere to the general work tone of seeking progress while maintaining stability, and flexibly use a variety of monetary policy tools in a timely manner. , better play the dual functions of total volume and structure, increase support for the real economy, maintain economic operation within a reasonable range, and promote high-quality economic development.

my country's economy has shown a clear momentum of recovery

Since 2022, the risks and challenges faced by my country's economic development have increased significantly, but the fundamentals of my country's economic development have not changed. As the domestic epidemic prevention and control situation continues to improve, and the implementation of a package of policies and measures to stabilize the economy has accelerated, my country's economy has shown a clear momentum of recovery, which also creates conditions for maintaining a reasonable level of macro leverage in the future. Zou Lan, director of the Monetary Policy Department of the People's Bank of China, believes that since 2022, due to unexpected factors such as the new crown pneumonia epidemic and the conflict between Russia and Ukraine, my country's economy has faced certain downward pressure, and investment in infrastructure construction has become an important means to stabilize the macro economy. According to the deployment of the executive meeting of the State Council, the People's Bank of China has increased the credit line of development policy banks in June, and increased the loan support for infrastructure construction projects that are useful in the long term and feasible in the short term. However, at present, the difficulty of obtaining project capital has become a constraint One of the important factors in project construction and loan issuance.

On June 29, the executive meeting of the State Council determined the policy-based development financial instruments to support the construction of major projects. In accordance with the decisions and arrangements of the Party Central Committee and the State Council and the work requirements of the Finance Committee, the People's Bank of China supports the China Development Bank and the Agricultural Development Bank to establish financial instruments with a total scale of 300 billion yuan. Zou Lan said that the specific uses of financial instruments: first, to supplement the capital of major investment projects, which should not exceed 50% of the total capital; second, to bridge special bonds that cannot be used as capital in the short term. For projects that need to be done sooner or later, with the support of financial tools, we can quickly and accurately break through the blocking points caused by the inability of capital to be in place, promote the project to start as soon as possible, and form a physical workload as soon as possible, helping to stabilize the macroeconomic market.

Policy and development financial instruments are invested in accordance with the principle of marketization, make independent decisions in compliance with laws and regulations, take responsibility for profits and losses, bear risks, preserve capital and make small profits, only make financial investments to exercise corresponding shareholder rights, and do not participate in the actual construction and operation of projects, and follow the principles of marketization. Determine how to exit. Zou Lan believes that investment projects should not only have strong social benefits, but also have certain economic feasibility, and focus on three types of projects: first, the five key infrastructure areas identified at the 11th meeting of the Central Finance and Economics Commission; Major scientific and technological innovation and other fields, and thirdly, other projects that can be invested by local government special bonds.

my country's macro policies are powerful, well-defined and effective

Since May 2022, under the leadership of the Party Central Committee and the State Council, with the overall improvement of the domestic epidemic situation, the State Council has accelerated the implementation of a package of measures to stabilize the economy. , the main economic indicators have improved marginally, but the foundation for recovery is not yet solid. The economic operation in the second half of the year still faces great uncertainty and instability. Hard efforts are still needed to stabilize the economy, and at the same time, we must pay attention to changes in the inflation situation. Since the fourth quarter of 2020, my country has achieved remarkable results in stabilizing leverage and promoting growth. The macro leverage ratio has declined for five consecutive quarters, creating valuable policy space for subsequent responses to various complex situations.

Ruan Jianhong said that from an international comparison, the growth rate of my country's macro leverage ratio has been significantly lower than that of other major economies since the epidemic, and relatively little new debt has supported the rapid recovery of the economy. At the end of 2021, the leverage ratios of the United States, Japan, and the euro area were 25.7, 39.5, and 21.4 percentage points higher than those at the end of 2019, while my country's macro leverage ratio increased by 16.5 percentage points during the same period, significantly lower than other major economies. At the same time, my country's economic performance continued to lead, and inflation was generally under control. From the perspective of policy effects, my country has achieved an optimized combination of "higher growth and lower inflation" supported by a moderate increase in the macro leverage ratio, indicating that the macro policy is powerful, measured and effective.

Since 2022, due to changes in the international situation and the unexpected impact of a new round of epidemic, the downward pressure on my country's economy has further increased. The macro leverage ratio is the ratio of total debt to GDP, and the slowdown in economic growth will push the macro leverage ratio to rise. In the first quarter of 2022, my country's macro leverage ratio was 277.1%, 4.6 percentage points higher than that at the end of 2021. At the same time, in order to cope with the downward pressure and focus on stabilizing the macroeconomic market, my country has further deployed a package of measures to stabilize the economy. The impact of these counter-cyclical control policies on debt growth will be reflected in the current period, but the impact on output is relatively lagging. Therefore, the macro leverage ratio There will be a phased increase, which is not only an objective reflection of external shocks, but also a reflection of the counter-cyclical control policies helping to stabilize the macroeconomic market.

Stabilize revenue, expectations and confidence in the real sector

In March and April 2022, due to unexpected unexpected factors at home and abroad, the downward pressure on my country's economy has increased, and the income and balance sheets of some enterprises and residents have been damaged. In this context, government departments have increased their support for the real economy. In the first five months of It is also a necessary measure to support the economy to tide over the difficulties. Zou Lan said that the impact of the epidemic is mainly staged. Since May, the domestic epidemic situation has improved, and the State Council has accelerated the implementation of a package of policies and measures to stabilize the economy. Fiscal, monetary and industrial policies have all stepped up implementation. The indicators have improved significantly, and the national economic operation has generally bottomed out. In the future, as the epidemic situation is generally under control, it is expected that the macro economy will maintain a steady recovery, the balance sheets of enterprises and residents are expected to be gradually repaired and improved, and credit support will remain strong.

Zou Lan believes that in the next stage, to continue to increase the willingness of enterprises and residents to expand, the most important thing is to make production and life rotate more steadily and efficiently, maintain the momentum of economic recovery, stabilize the income, expectations and confidence of the real sector, and further enhance endogenous growth. Growth momentum and economic vitality. In accordance with the decisions and arrangements of the CPC Central Committee and the State Council, the People's Bank of China will continue to implement a package of policy measures to stabilize the economy, increase the implementation of a prudent monetary policy, create a favorable monetary and financial environment, form policy synergy, and keep the economy operating within a reasonable range. First, in terms of total liquidity, maintain a reasonable and sufficient liquidity, increase credit support for the real economy, keep the growth rate of money supply and social financing scale basically in line with the nominal economic growth rate, and complete the annual transfer of surplus profits to the central government ahead of schedule. . Guide policy development banks to implement the scale of new 800 billion yuan of credit and set up 300 billion yuan of financial instruments to support infrastructure construction. Second, in terms of price, we will give full play to the efficiency and guiding role of the reform of interest rates quoted in the loan market, and give play to the role of the market-oriented adjustment mechanism for deposit interest rates, so as to guide financial institutions to transmit the effect of the decline in deposit interest rates to the loan side, and further promote financial institutions to reduce actual loan interest rates. Third, in terms of structure, continue to make good use of structural monetary policy tools and highlight key areas of financial support. From the second quarter of 2022, the proportion of incentive funds provided by the People's Bank of China through inclusive small and micro loan support tools will be increased from 1% to 2%, and carbon emission reduction support tools will be well used and support for clean and efficient use of coal, technological innovation, and inclusive elderly care. , Special re-loans for transportation and logistics, continue to support the development of agriculture-related, small and micro enterprises, and cultivate new economic growth points.