Pan Gongsheng made a financial work report: Continue to implement a moderately loose monetary policy

China News Service, Beijing, November 5th. The official website of the People's Bank of China announced on the 5th a report on financial work made by Governor Pan Gongsheng on behalf of the State Council. The report covers the implementation of monetary policy, the operation of financial markets, and considerations for next steps.

In terms of the implementation of monetary policy, the People's Bank of China implements a moderately loose monetary policy and comprehensively uses a variety of monetary policy tools such as reverse repos, medium-term lending facilities, and buying and selling treasury bonds to maintain sufficient liquidity; it plays the guiding role of structural monetary policy tools and introduced a series of structural monetary policy measures twice in January and September 2026.

Judging from the data, at the end of September 2026, the stock of social financing and the balance of broad money supply increased by 7.1% and 7.2% respectively year-on-year. In September 2026, the weighted average interest rate of new corporate loans was 2.96%, and the interest rate of new personal mortgage loans was 3.05%. The yield on 5-year AAA corporate bonds is 1.7%. Major interest rates are at historically low levels, creating good monetary and financial conditions for stable economic growth, high-quality development, and smooth operation of financial markets.

In terms of financial market operations, two monetary policy tools support the role of the capital market; adhering to the decisive role of the market in the formation of exchange rates, the People's Bank of China uses macro-prudential management tools to maintain the smooth operation of the foreign exchange market. From October 2025 to September 2026, the RMB exchange rate against the US dollar appreciated by approximately 5.8%. After continuous construction and development, the foreign exchange market has become more mature and exports have become less sensitive to exchange rate fluctuations.

Regarding the next work considerations, Pan Gongsheng said that it is necessary to continue to implement a moderately loose monetary policy and create a suitable monetary and financial environment for the economy to continue to develop toward new and better development; comprehensively use a variety of tools to maintain sufficient liquidity to match the growth of social financing scale and money supply with the expected goals of economic growth and overall price level; improve the interest rate control mechanism, continue to implement and supervise interest rate policies, and reduce financing intermediate costs; maintain the basic stability of the RMB exchange rate at a reasonable and balanced level; continue to evaluate and improve the monetary policy framework.

He also said that it is necessary to implement monetary policy tools to support the capital market, support Central Huijin in playing the role of a stabilization fund, expand medium and long-term funding sources, channels and market entry methods, consolidate and improve the capital market stabilization mechanism, and maintain the smooth operation of financial markets such as stocks, bonds, and foreign exchange. (over)