China News Service, Beijing, October 19th The 2026 Financial Street Forum Annual Conference opened in Beijing on the 19th. At the opening ceremony, Pan Gongsheng, Governor of the People's Bank of China, announced that a number of policy measures will be introduced, including expanding the scope of applicable institutions for the Standing Lending Facility (SLF) and promoting the interconnection of inter-bank and exchange bond markets.
In terms of liquidity support, the central bank will work with the State Administration of Financial Supervision and the China Securities Regulatory Commission to establish liquidity support tools to deal with large redemptions by non-bank institutions. The purpose of this tool is to establish a bond market stabilization mechanism and constitute a new tool for the central bank's macro-prudential management. Institutions to which the tool is applicable include bank wealth management subsidiaries, public fund managers, and corresponding bank parent banks, securities parent companies, etc.
Pan Gongsheng also announced that the scope of applicable institutions for the Standing Lending Facility will be expanded. At present, the Standing Lending Facility is mainly an open market operation tool used by the central bank to provide mortgage financing to city commercial banks and rural financial institutions, mainly to meet temporary liquidity needs. On this basis, the central bank will further include domestic foreign-funded corporate banks, and at the same time clarify that the same operational arrangements apply to national banks to achieve full coverage of domestic deposit-taking financial institutions. After the inclusion of domestic foreign-funded corporate banks, they also gained liquidity support channels from the central bank, which was helpful for better business development.
The central bank will also promote the interconnection of inter-bank and exchange bond markets. The interconnection between financial market infrastructure can facilitate cross-market issuance and trading of bonds, promote market liquidity and price formation, and better play the role of financial market price discovery and resource allocation. "The current interconnection has met the conditions for implementation. It can be launched after the bond market infrastructure operators and market participants conduct testing." Pan Gongsheng said.
In addition, the international use of RMB has increased in recent years, and the demand for RMB liquidity management by overseas financial institutions has increased. The central bank plans to pilot eight Chinese-funded and foreign-funded overseas RMB clearing banks to carry out proprietary transactions in the domestic inter-bank foreign exchange market in accordance with international financial market practices and trading practices, facilitate overseas institutions to participate more deeply in the domestic foreign exchange market, and promote the integrated development of onshore and offshore markets. Pan Gongsheng said that in the future, the foreign exchange market will be further opened based on the pilot situation.
On the same day, the central bank, together with 10 departments including the Ministry of Science and Technology, issued the "Guiding Opinions on Financial Support for the Construction of International Science and Technology Innovation Centers in Beijing (Beijing-Tianjin-Hebei), Shanghai (Yangtze River Delta), and the Guangdong-Hong Kong-Macao Greater Bay Area." Pan Gongsheng said that it will accelerate the construction of a science and technology financial service system that is compatible with the core functions and international positioning of the international science and technology innovation center, promote re-loan, bond market "technology board", cross-border investment and financing and other policies to increase investment and pilot trials in relevant regions, and help create a high-level science and technology financial ecosystem.
