Xicheng, Beijing, a neighborhood with an area of less than 3 square kilometers, is known as the "Heart of China's Finance".
It houses one-third of China’s financial assets and brings together national financial regulatory authorities and the world’s top financial institutions.
From October 19th to 22nd, the 2026 Financial Street Forum Annual Meeting was held on this street that affects the world. The heads of one bank, two bureaus and one conference collectively appeared to speak out and release the latest voice of financial development.
The market read four signals from this: the monetary policy needs to change its anchor, the capital market needs to attract more money, opening up to the outside world needs to be further expanded, and the overall internal system needs to be stable.
Each one affects the market and is related to people's pocketbooks.
The first signal: the policy interest rate "changes anchor".
At the forum, Central Bank Governor Pan Gongsheng said that the transformation and improvement of the monetary policy framework will be promoted. Some institutions believe that the impact of relevant measures on interest rate pricing may be equivalent to a "disguised interest rate cut."
What exactly does it mean?
In the past, the 7-day reverse repurchase rate was the "anchor" of policy interest rates, but about 90% of repo transactions in the interbank market were overnight, and there was a "time difference" between the two.
Pan Gongsheng announced that the central bank will consider opportunities to switch the duration of the main operating products in the open market to overnight, and the overnight repurchase rate in the open market will accordingly become the main policy interest rate.
Huatai Securities analyzed that after the policy interest rate changed its anchor, the interest rate center moved substantially downward. A CICC research report stated that this may be combined with the continuation of low funding rates to stabilize market financing cost expectations and have a certain interest rate reduction effect on the capital market and bond market.
On the other hand, the loan interest rate pricing benchmark will also change: the central bank will transform from a relatively simple reference to the loan prime rate (LPR) to a more diversified pricing benchmark.
This means that monetary policy transmission will be more direct, and changes in funding interest rates can be transmitted to the loan and bond markets more quickly. However, CICC and others also mentioned that this round of policies focuses on long-term financial stability and development, and does not directly release a signal of total easing.
The second signal: the capital market is developing steadily.
Regarding the stock market that investors are concerned about, Wu Qing, chairman of the China Securities Regulatory Commission, made two key points in his speech.
First, attract money and stabilize confidence.
Since October, the market has experienced a correction. Liu Yu, chief economist of Industrial Securities, believes that the core behind this is liquidity pressure under unanimous wait-and-see conditions.
This speech by the China Securities Regulatory Commission focuses on alleviating liquidity pressure from three aspects: emphasizing the priority of stability, strengthening the reserve of policy tools, and consolidating and improving the market stabilization mechanism; emphasizing the long-term investment value of Chinese assets; indicating that supervision remains concerned about external shocks and their amplification effects.
Specific tools have also been released. The China Securities Regulatory Commission approved the registration of the first batch of 18 active ETFs on October 19. Wu Qing said that this is an important measure to promote the innovative development of fund products and will also introduce more incremental funds to the market.
Second, promote development and innovation.
Wu Qing mentioned that it is necessary to focus on supporting the development of new productive forces, implement detailed reform measures for the "two innovation boards", and further improve mechanisms such as identification and screening of technology companies.
Liu Yu believes that this move by the China Securities Regulatory Commission will help more companies with technological competitiveness broaden their sources of funds and transform their financing advantages into R&D and industrialization capabilities.
The third signal: financial security will not be relaxed.
Ding Xiangqun, director of the State Administration of Financial Supervision, mentioned one word when it comes to preventing and controlling financial risks: “full coverage.”
"All financial activities will be brought under supervision in accordance with the law, and efforts will be made to achieve full coverage without exception." This statement reflects the determination of the financial system to eliminate regulatory gaps and leave no dead ends.
In addition, the central bank, the State Administration of Financial Supervision, and the China Securities Regulatory Commission will also establish liquidity support tools to deal with large redemptions by non-bank institutions. Shi Jinfeng, an analyst at Huatai Securities, believes that this tool is designed to cut off the negative cycle of "sales-net value decline-further redemptions" in the bond market under extreme circumstances. It will provide substantial support for the stability of the bond market and risk prevention and control of non-bank institutions, while indirectly benefiting stock market sentiment.
The fourth signal: Opening up to the outside world and then expanding.
In the 15 years since it was held, the Financial Street Forum has attracted much attention not only because it is the “release hall” for China’s financial policies, but also because it is the “reception room” for dialogue between China and the world.
More than 400 guests from more than 40 countries and regions around the world attended the conference, and China once again released a signal for the opening up of the financial industry.
Pan Gongsheng mentioned that it is planned to pilot a pilot program to allow eight Chinese-funded and foreign-funded overseas RMB clearing banks to carry out proprietary transactions in the domestic inter-bank foreign exchange market. The operating objects of the repurchase instruments of overseas central bank institutions shall be included in the foreign-funded RMB business clearing banks.
Zhu Hexin, deputy governor of the central bank and director of the State Administration of Foreign Exchange, said that the foreign exchange bureau should launch two "package" policies to facilitate current accounts and optimize foreign exchange management under capital accounts, and expand the pilot business of securities companies' foreign exchange settlement and sales.
China's financial development has never been unique, but has resonated with the world. Ding Xiangqun emphasized that China's financial industry has always been open to the outside world, unswervingly promoting opening up to the outside world, and promoting competition and positive interaction between Chinese and foreign-funded institutions.
Be open, cooperative and inclusive. In Financial Street, you can see not only the density of policies and the width of opening up, but also a vivid picture of China's finance and the world running in both directions.
