OREANDA-NEWS. September 01, 2014. The annual seminar for PBC branch office presidents was convened in Jinan, Shandong Province.

The seminar was held to study and implement the decisions adopted by the CPC Central Committee and the State Council on economic and financial work, to analyze the current economic and financial situations at home and abroad, and to deliberate on and make preparations for the work in the second half of the year. Governor Zhou Xiaochuan delivered a work report.

He provided an in-depth analysis of current economic and financial situations and the main issues, and laid out the priority works for the periods ahead. Mr. Jiang Yikang, CPC Secretary of Shangdong Province, addressed the meeting, and Mr. Guo Shuqing, Governor of Shangdong Province, briefed the participants on local social and economic developments. Deputy Governor Hu Xiaolian chaired the meeting and gave a concluding speech. Mr. Liu Shiyu, Mr. Yi Gang, Mr. Wang Huaqing, Mr. Li Dongrong, Mr. Guo Qingping, and Ms. Jin Qi, among others, attended the meeting.

The participants were of the view that since the beginning of 2014, facing complex economic and financial situations both at home and abroad, the PBC, under the leadership of the CPC Central Committee and the State Council, earnestly implemented the decisions of the 18th CPC National Congress, the 3rd Plenum of 18th CPC Central Committee, and the Central Economic Work Conference, promoted reform and innovation in all the fields of central bank work, furthered financial sector reform, safeguarded financial stability, continuously upgraded financial services and management, and provided support in the economic recovery and structural adjustment.

In the first half of the year, the various works of the PBC system have proceeded smoothly and produced fairly good results. First, the PBC continued to implement a sound monetary policy, stayed focused, took initiatives as called for, and strengthened targeted regulations. A mixed of liquidity management tools were employed, while the toolkit of the monetary policy was improved. The PBC flexibly managed the direction and intensity of liquidity operations, and properly managed the aggregate liquidity on the market, to anchor market expectations, promote the stable operation of the money market.

The PBC lowered the reserve requirement ratios for selected financial institutions on two occasions, adjusted relevant parameters of the differentiated reserve requirement mechanism, used central bank loans to guide financial institutions to beef up credit support to the real economy, in particular to the agricultural sector, rural areas, farmers, small and micro enterprises, and to the less developed areas in the central and western regions.

Efforts were made to strengthen credit policy guidance, step up financial support to priority fields, upgrade financial services to improve people’s livelihood, strictly implement the differentiated home mortgage policy, and improve financial services to government-subsidized housing projects and reconstruction of shanty dwellings.

Second, the market-based interest-rate reform was advanced, the self-disciplinary pricing mechanism of market-based interest rates was improved, and the issuances and trading of inter-bank certificates of deposit were promoted. The flexibility of RMB exchange rate was expanded in both directions.

Third, reform of policy financial institutions was advanced. Fourth, the cross-border use of RMB was further expanded. RMB clearing arrangements were established in Frankfurt, London, and Seoul. The PBC used the Korean won fund under the China-ROK bilateral currency swap arrangement to support trade financing for the corporate sector. Fifth, the reform of foreign-exchange administration was deepened. Administrative procedures were streamlined and the administrative power was delegated to lower levels.

Sixth, financial risk monitoring and identifying were enhanced in key areas, and regulatory coordination was strengthened to safeguard the bottom line of no occurrence of regional or systemic financial risks. Seventh, financial services and management were pushed ahead steadily, including financial statistics, payment and settlement, currency issuance, state treasury management, credit information management, anti-money laundering, financial consumer protection. Eighth, the PBC actively took part in bilateral and multilateral financial cooperation, and promoted the establishment of Contingent Reserve Arrangement of the BRICS countries. Ninth, human resources development, the building of a clear government, and internal management in the PBC system all made progress.

The participants acknowledged that since the second round of the Party’s mass line education and practice, members of the PBC CPC Committee made field trips to their contact areas to give out specific instructions, while the PBC branch offices at various levels earnestly followed the guidance of the CPC Central Committee, adhered to high standards and strict requirements, made sure the rectification in the first round units of the Party’s mass line education practice was deepened, oversaw the step-by-step implementation by the second round units of the Party’s mass line education, detected problems related to four forms of undesirable work styles, i.e., formalism, bureaucracy, hedonism, and extravagance, and made phased achievements. Through the education and practice campaign, the PBC further consolidated the philosophy of serving the people and being diligent and honest, and strengthened the staff team’s cohesion, capacity, and creativity, which contributed to PBC’s Party building and all kinds of works.

It was emphasized at the seminar that tasks in macroeconomic management, reform, development, and stabilization remained arduous. The PBC system shall earnestly carry out the Party’s mass line education practice, actively promote the building of a clean government, improve the work style, and enhance the awareness of serving the people. In line with CPC Central Committee’s decision on the current economic and financial work, the PBC system will continue to seek progress while maintaining stability and promote reform and innovation, continuously improve macroeconomic management, and strike a balance among promoting growth, deepening reform, adjusting economic structure, benefiting the people’s livelihood, and preventing risks. While maintaining the basic orientation of a sound monetary policy, the PBC will follow the requirement of targeted adjustment, step up financial support to key areas and weak links in the economy, especially to the agricultural sector, rural areas, and farmers, small and micro enterprises, and take measures to reduce financing cost for the corporate sector in order to promote the sustainable and stable economic development.

The reform of financial system will be deepened, and the role of interest rate in transmitting monetary policy will be brought into full play. The RMB exchange-rate regime will be improved, the reform of policy financial institutions will be advanced, and the establishment of a deposit insurance scheme will be accelerated. Efforts will continue to improve the joint-ministerial financial regulatory coordination mechanism, strengthen monitoring of financial risks in key areas and industries, promptly resolve and dispose of financial risks, and safeguard the bottom line of no occurrence of regional or systemic financial risks. Financial market infrastructure building will be pushed forward, and financial services and management will be upgraded.

At the seminar, members of PBC CPC Committee spoke on the work arrangements for the second half of the year in their respective portfolio. Director-generals of some departments exchanged views on their respective works, and presidents of PBC branch offices made in-depth discussions on the economic and financial situation based on regional conditions in their jurisdictions.