Xi on Healthy China Agenda - Breakdown of China's Economic Policy Press Conference
Hello folks,
In this special Saturday edition, I am covering two developments. First, I’ll cover Xi Jinping’s remarks on the Healthy China agenda.
Second, I am covering the primary remarks from China’s economic policymakers from their press briefing yesterday. This was a really, really long press conference. So, I’ve covered all the areas that I thought were most important. There are other questions about say technology and robotics or the internationalisation of the RMB that I have not covered. But, the link to the presser and a video is shared below, if you would like to go through it.
Anyway, here goes.
At the sidelines of the two sessions, on Friday, Xi Jinping attended a joint group meeting during the fourth session of the 14th CPPCC National Committee. The meeting was attended by national political advisors from the Chinese Peasants and Workers Democratic Party, the Jiusan Society, the sector of medicine and health, and the sector of welfare and social security. Cai Qi and Wang Huning were in attendance.
Six political advisors spoke at the meeting. They covered areas like:
health-first development strategy
improving primary healthcare services
strengthening materials technology research
promoting innovative drug development
preventing and treating altitude sickness, and
developing public welfare and charitable undertakings.
After hearing their remarks, Xi delivered a speech. He said that:
“Building a Healthy China by 2035 is a strategic decision made by the CPC Central Committee, and the 15th Five-Year Plan period is critical to achieving this goal. He emphasised the need for coordinated planning and accelerated implementation.” 联组会上，王路、马秀珍、卢柯、蒋建东、巴桑卓玛、刘启芳等6位委员，分别就实施健康优先发展战略、提升基层医疗服务水平、加强材料技术攻关、推进创新药研发、做好高原病防治、发展公益慈善事业等作了发言.
Xi Jinping emphasised that China is a socialist country and a developing nation with a massive population and still-significant urban-rural and regional disparities. Building a Healthy China requires adhering to China’s actual conditions, unwaveringly following the path of health development with Chinese characteristics, and unwaveringly implementing the health work guidelines for the new era. As circumstances evolve, certain specific health policies and measures will need to be refined and improved, but on fundamental questions, clear-headedness and strategic resolve must always be maintained. Xi Jinping noted that building a Healthy China is a complex systems undertaking. In the face of the people’s growing and diversified health needs, it is essential to identify priorities and firmly grasp those areas of work that benefit the broadest population and have far-reaching ripple effects, concentrating efforts and resources on strengthening the public health system, building a high-quality and efficient medical services system, and promoting healthy and civilized lifestyles, in order to drive progress and achieve new results. 习近平强调，我国是社会主义国家，是人口规模巨大、城乡区域差距仍然较大的发展中国家。建设健康中国，必须坚持从我国国情出发，坚定不移走中国特色卫生与健康发展道路，坚定不移贯彻新时代卫生与健康工作方针。随着形势发展变化，卫生与健康工作需要优化完善一些具体政策举措，但在根本问题上必须始终头脑清醒、保持战略定力。习近平指出，建设健康中国是一项系统工程。面对人民群众日益增长的多元化卫生健康需求，必须突出重点，紧紧抓住那些惠及面广、牵一发而动全身的工作，在健全公共卫生体系、建设优质高效医疗服务体系、倡导健康文明生活方式等方面集中力量和资源、采取有效措施加以推动，不断取得新的成效.
Xi Jinping emphasised the need to improve the working pattern of unified leadership by the Party Committee and joint management by the Party and government, and to perfect the policy and institutional system for health promotion, providing strong guarantees for the construction of a Healthy China. Further deepen reform, and improve the mechanisms for coordinated development and governance of medical services, medical insurance, and pharmaceuticals. Promote the transformation and application of the achievements of scientific and technological innovation, and advance the digital and intelligent construction of nationwide health. Strengthen Party-building work in the health and healthcare sector, mobilise the enthusiasm, initiative, and creativity of the vast number of medical personnel, increase efforts in talent cultivation, promote fine medical ethics and professional conduct, and strive to create a clean and upright industry environment. 习近平强调，要健全党委统一领导、党政齐抓共管的工作格局，完善健康促进政策制度体系，为健康中国建设提供有力保障。进一步深化改革，完善医疗、医保、医药协同发展和治理机制。推动科技创新成果转化运用，推进全民健康数智化建设。加强卫生健康行业党建工作，调动广大医务人员的积极性主动性创造性，加大人才培养力度，弘扬优良医德医风，着力营造风清气正的行业环境.
Xi Jinping pointed out that building a Healthy China requires the joint efforts of the whole society. The CPPCC should give play to its role as a specialised consultative institution, focus on relevant theoretical and practical issues, carry out in-depth investigation and research, and put forward practical and actionable policy recommendations. 习近平指出，建设健康中国，需要全社会共同努力。人民政协要发挥专门协商机构作用，聚焦相关理论和实践问题深入调查研究，提出务实管用的对策建议.
Next, let’s look at the takeaways from the press conference on the economy.
First, NDRC’s Zheng Shanjie talked about how China plans to achieve the GDP target of 4.5%-5%. He made four points:
First, intensify efforts to enhance the effectiveness of macroeconomic regulation and control. We will adhere to the principle of seeking progress while maintaining stability, and improving quality and efficiency, placing importance both on strength and on coordination. Emphasising strength means continuing to implement more proactive and effective macro policies and increasing the intensity of counter-cyclical and cross-cyclical adjustment. Emphasising coordination means leveraging the integrated effects of existing policies and incremental policies, and the synergistic effects of macro policies and reform measures, strengthening policy coordination in all aspects including fiscal, monetary, industrial, investment, employment, consumption, price, and regional policies, and delivering a well-combined policy combination punch. It is expected that this year the increment of GDP will exceed 6 trillion yuan, equivalent to the total annual GDP of a developed economy. These will provide strong support for stabilising employment, benefiting people’s livelihoods, and preventing risks. At the same time, we also clearly recognise that a market economy is essentially a rule-of-law economy. To do a good job in macro regulation and control under the new situation, it is necessary both to ‘let go to ensure vitality’ and to ‘manage well’, and to truly use the rule of law to regulate the boundaries between the market and the government. 第一，加力提升宏观经济调控效能。我们将坚持稳中求进、提质增效，既重力度、也重协同，重力度就是继续实施更加积极有为的宏观政策，加大逆周期和跨周期调节力度；重协同就是发挥存量政策和增量政策的集成效应、宏观政策和改革举措的叠加效应，强化财政、货币、产业、投资、就业、消费、价格、区域等方方面面政策协同，打好政策“组合拳”。预计今年GDP增量超过6万亿元，相当于一个发达经济体全年的GDP总量，这些为稳就业、惠民生、防风险提供有力支撑。同时，我们也深刻认识到，市场经济本质上是法治经济，做好新形势下宏观调控，既要“放得活”又要“管得好”，切实用法治规范市场和政府边界.
Second, intensify efforts to build a strong domestic market. China’s physical consumption volume is already the largest in the world, and this year’s work will focus on consumption and investment. On consumption, we will continue to implement the ‘two new’ policies and, together with the Ministry of Commerce and the Ministry of Human Resources and Social Security, deeply implement a special action to boost consumption, introducing new measures such as actions to ‘stabilise jobs, expand capacity, and improve quality’, and actions to ‘expand capacity and improve quality in the service sector’, arranging more policies and funds to better release consumption potential. On investment, we will coordinate resources and continue to promote work such as the construction of the ‘two heavy’. In terms of main actors, we will further increase the scale of government investment, stimulate the vitality of private investment, and promote joint efforts by state-owned enterprises and private enterprises. In terms of investment direction, we will advance the 109 major projects and programs in the 15th FYP and carry out a number of actions to expand effective investment. For example, we will advance the construction of the ‘six networks’ and key fields, continuously improving everyone’s production conditions and living environment. The ‘six networks’ are the water network, power grid, computing-power network, new-type communications network, urban underground pipeline network, and logistics network. Key fields include comprehensive multi-dimensional transport facilities, as well as infrastructure and public service facilities related to consumption, the low-altitude economy, ‘AI+’, education, and healthcare. A preliminary estimate suggests that investment in these areas will exceed 7 trillion yuan this year. 第二，加力建设强大国内市场。我国实物消费量已经是世界第一，今年工作重点是消费、投资两个方面。消费方面，我们将继续实施“两新”政策，会同商务部、人社部，深入实施提振消费专项行动，推出稳岗扩容提质行动、服务业扩能提质行动等新举措，安排更多政策和资金，更好释放消费潜力。投资方面，我们将统筹资源力量，继续推动“两重”建设等工作。在主体上，进一步增加政府投资规模，激发民间投资活力，推动国企民企共同发力。在投向上，推进“十五五”规划109项重大工程和项目，开展一批扩大有效投资行动。比如，我们将推进“六张网”和重点领域建设，不断改善大家的生产条件和生活环境。“六张网”就是水网、电网、算力网、新型通信网、城市地下管网、物流网，重点领域包括综合立体交通设施，消费、低空、“人工智能+”、教育医疗等基础设施和公共服务设施，今年初步估算这些方面的投资将超过7万亿元.
Third, intensify efforts to strengthen the modernised industrial system. We will coordinate the advancement of scientific and technological innovation and industrial innovation, and promote the deep integration of advanced manufacturing and modern services, accelerating the renewal of old growth drivers and the growth of new drivers. On the one hand, we will optimise and upgrade the basic foundation; on the other, we will cultivate and expand new pillars.
Optimising and upgrading the basic foundation means implementing a series of actions such as improving quality and upgrading key industries and reducing costs and carbon emissions, arranging 200 billion yuan in ultra-long-term special treasury bonds to support equipment renewal, and promoting the manufacturing industry to move from being large to becoming strong, from ‘scale leadership’ to ‘strength leadership’. At the same time, after the Two Sessions a National Conference on the Service Industry will be convened. Together with the Ministry of Commerce, the Ministry of Industry and Information Technology, and other departments, we will introduce a series of measures to expand capacity and improve quality, fully tapping the potential for high-quality development of the service sector. During the 15th FYP period, the scale of the service sector is expected to exceed 100 trillion yuan.
Cultivating and expanding new pillars means implementing industrial innovation projects and intensifying support for the development of emerging industries and future industries. For example, the BeiDou system seems far away in the sky but is actually close at hand, commonly used mobile phone navigation, emergency rescue, and offshore operations all use BeiDou services. We will continue to implement the BeiDou large-scale application project and promote the scale of the BeiDou industry to exceed 1 trillion yuan within five years. Another example is deepening the ‘AI+’ initiative to empower thousands of industries and benefit thousands of households. By the end of the 15th FYP period, the scale of AI-related industries will grow to more than 10 trillion yuan. To further strengthen support for innovation, last year we established a National Venture Capital Guidance Fund. This year, together with the Ministry of Finance and the People’s Bank of China, we will also establish a national-level mergers and acquisitions fund to further smooth exit channels for venture capital investment and improve the turnover efficiency of venture capital funds. This area is expected to guide and leverage various types of funds exceeding 1 trillion yuan.
第三，加力做强现代化产业体系。我们将统筹推进科技创新和产业创新、先进制造业和现代服务业深度融合，加快旧动能更新、新动能成长。一方面，优化提升基本盘，另一方面，培育壮大新支柱。优化提升基本盘，就是实施重点产业提质升级、降本降碳等一系列行动，安排2000亿元超长期特别国债支持设备更新，推动制造业加快由大到强、从“规模领先”到“实力领跑”。同时，两会后将召开全国服务业大会，我们将会同商务部、工信部等部门，出台一系列扩能提质举措，充分挖掘服务业高质量发展潜力，“十五五”时期，预计服务业规模将突破100万亿。培育壮大新支柱，就是实施产业创新工程，加力支持新兴产业、未来产业发展。比如，北斗系统看似远在天边、其实近在眼前，比如常用的手机导航，还有应急救援、远洋作业等等，都在用北斗的服务。我们将继续实施北斗规模应用工程，推动北斗产业规模五年内突破1万亿。再比如，我们将深化“人工智能+”行动，赋能千行百业、服务千家万户，“十五五”末人工智能相关产业规模将增长到10万亿以上。为加力支持创新，去年我们设立了国家创投引导基金；今年我们将会同财政部、人民银行等部门，再设立国家级并购基金，进一步畅通创业投资退出渠道，提高创投资本周转效率，这一块预计引导撬动各类资金规模超1万亿元.
Fourth, intensify efforts to clear the chokepoints and bottlenecks in economic and social development. We will deepen reform and improve the legal system so that the public and enterprises can tangibly feel that ‘three things are becoming fewer and fewer’ in accordance with the law and regulations. First, there will be fewer and fewer barriers. Second, there will be fewer and fewer unreasonable restrictions. Third, through combining point and surface approaches and implementing systematic policies, there will be fewer and fewer problems. 第四，加力打通经济社会发展的卡点堵点。我们将深化改革、健全法制，依法依规让群众和企业切实感受到“3个越来越少”。一是让壁垒越来越少。二是让不合理的限制越来越少。三是通过点面结合、系统施策，让问题越来越少.
Finance Minister Lan Fo’an spoke about implementing a “more proactive” fiscal policy in 2026. This was the framework announced last year. For this year, he explained its direction as follows:
In terms of funding scale, three aspects are reaching new highs this year:
First, total expenditure is hitting a new record, exceeding 30 trillion yuan for the first time. The deficit ratio has been maintained at around 4%, reaching 5.89 trillion yuan. Including fiscal revenue and the use of existing funds, national general public budget expenditure will surpass 30 trillion yuan for the first time.
Second, the scale of newly-added government bonds has reached a new high, providing greater force to expand domestic demand, stabilize growth, and promote transformation. Newly-added local government special-purpose bonds have reached 4.4 trillion yuan. 1.3 trillion yuan of ultra-long-term special treasury bonds will be issued to continue supporting major construction projects and new infrastructure initiatives. 300 billion yuan of special treasury bonds will be issued to replenish the core tier-one capital of large state-owned commercial banks. Adding bonds used to cover the deficit, the scale of new government bonds this year will reach 11.89 trillion yuan, the largest in recent years.
Third, central government transfer payments to local governments will reach a record high, further strengthening local fiscal capacity. The total amount of central government transfer payments to local governments will reach 10.42 trillion yuan, exceeding 10 trillion yuan for four consecutive years. Among these, two types of fiscal-capacity transfer payments—equalisation transfer payments and award-and-subsidy funds under the county-level basic fiscal capacity guarantee mechanism—have been increased by 110 billion yuan. These funds will be directly provided to local governments, allowing them to have more financial resources to safeguard basic public services, improve people’s livelihoods, and develop the economy.
在资金规模上，今年三个方面创了“新高”：一是支出总量创新高，首次超过30万亿元。今年赤字率继续按4%左右安排，赤字规模达到5.89万亿元。加上财政收入、使用存量资金等，全国一般公共预算支出首次迈上了30万亿元的新台阶。二是新增政府债券规模创新高，更大力度扩内需、稳增长、促转型。新增地方政府专项债券4.4万亿元。发行超长期特别国债1.3万亿元，持续支持“两重”建设、“两新”工作等。发行特别国债3000亿元，用于国有大型商业银行补充核心一级资本。再加上弥补赤字的债券，今年新增政府债券规模达到11.89万亿元，是近年来力度最大的。三是中央对地方转移支付创新高，地方财政保障能力进一步增强。中央对地方转移支付的总量达到10.42万亿元，连续4年超过10万亿元。其中，均衡性转移支付、县级基本财力保障机制奖补资金，两项财力性转移支付，增加1100亿元。这些资金实打实给到地方，让各地有更多财力兜牢“三保”、改善民生、发展经济.
“This year’s ‘more proactive’ fiscal policy has a notable highlight in its strong policy coordination effects, mainly reflected in three aspects.
First, coordination between fiscal policy and macro policies such as finance. This year, an innovative fiscal-financial coordination policy tool to boost domestic demand has been established. By zeroing in on household consumption and private investment as two key levers, a mechanism has been designed to harness the respective strengths of fiscal, financial, and industrial policies in an integrated and coordinated manner, channeling financial capital flows and large-scale social funds toward consumption and the real economy, thereby further amplifying the multiplier effect of fiscal resources.
Second, coordination between reform and innovation on one hand, and policy support on the other. Reform-driven approaches are being used to improve the precision and effectiveness of policies. For example, pilot programs are being explored to consolidate and make more flexible use of transfer payment funds, so that such funds can better match actual local needs and enhance localities’ autonomous fiscal capacity and ability to allocate resources holistically. Another example is further optimising the structure of government debt, improving the pilot program allowing special bonds to be self-reviewed and self-issued, and making good use of the valuable debt space.
Third, coordination among the various expenditure arrangements. Strong efforts will be made to optimise the structure of expenditures, ensuring both guarantees and constraints. On the one hand, careful budgeting will be practiced, strictly implementing the requirement that Party and government organs become accustomed to living on tight budgets. On the other hand, more funds will be directed to key areas and critical links of high-quality development. This year, national science and technology spending is arranged at nearly 1.3 trillion yuan, an increase of 7.1%. Expenditures on education, social security and employment, health, and housing security together exceed 12.4 trillion yuan. Fiscal policy is both giving full support to the vigorous development of the nation’s various endeavours and striving to ensure that every family’s life steadily improves.
今年“更加积极”的财政政策，一个突出的亮点是政策协同效应强。重点体现在三个方面：一是财政与金融等宏观政策协同。今年创新设立财政金融协同促内需政策工具，就是抓住居民消费、民间投资两个关键，设计出一套机制，发挥财政、金融、产业等多个政策各自的优势，有机结合、协调联动，带动金融“活水”和大规模社会资金，流向消费和实体经济，进一步放大财政资金的乘数效应。二是改革创新与政策支持协同。用改革的方法，提升政策的精准度和有效性。比如，探索开展转移支付整合统筹使用试点，让转移支付资金更好适配地方实际需求，增强地方的自主财力和统筹能力。再比如，进一步优化政府债务结构，完善专项债券“自审自发”试点，用好宝贵的债务空间。三是各项支出安排相互协同。下大力气优化支出结构，有保有压。一方面，精打细算，严格落实党政机关习惯过紧日子要求。另一方面，把更多资金用在高质量发展的重点领域和关键环节。今年，全国科学技术支出安排近1.3万亿元，增长7.1%；教育、社会保障和就业、卫生健康、住房保障4项支出，合计超过12.4万亿元。财政既全力支持国家的各项事业蓬勃发展，也努力保障每个小家庭的生活蒸蒸日上.
Minister Wang Wentao put forward three points in terms of how the Ministry of Commerce will help boost consumption.
First, focussing on goods consumption. There are two key tasks. The first is to continue implementing the trade-in program for consumer goods. The Government Work Report points out that this year 250 billion yuan in ultra-long-term special treasury bonds will be arranged to support consumer goods trade-ins. Up to now, the trade-in policy for consumer goods has driven sales exceeding 4.16 trillion yuan, benefiting 531 million person-times. This year, we will further optimise the implementation mechanism, upgrading the trade-in program from version 1.0 to 2.0, focusing on supporting two aspects: green and intelligent products and offline physical retail, creating market space and adding vitality for new industries and new sectors. The second task is to step up pilot programs for new consumption business forms, new models, and new scenarios (three new). The central government has arranged special funds, and we will support 50 pilot cities including Beijing, focusing on key directions such as first-launch economy and cross-sector integration, to create a batch of new consumption scenarios with strong experiential features, wide spillover effects, and high visibility, thereby releasing consumption potential. 第一，商品消费方面。重点有两项工作，一是接续实施消费品以旧换新。《政府工作报告》指出，今年安排超长期特别国债2500亿元支持消费品以旧换新。截至目前，消费品以旧换新政策带动销售额超4.16万亿元，惠及5.31亿人次。今年我们将进一步优化实施机制，以旧换新从1.0升到了2.0，重点支持两个方面：绿色智能商品和线下实体零售，为新产业、新赛道换出市场空间、增添活力。二是加力推进消费新业态新模式新场景（“三新”）试点。中央财政安排了专门资金，我们将支持北京等50个试点城市，聚焦首发经济、跨界融合等重点方向，打造一批体验性强、带动面广、显示度高的消费新场景，释放消费潜力.
Second, focusing on services consumption. In January this year, the General Office of the State Council issued the Work Plan for Accelerating the Cultivation of New Growth Points for Service Consumption, which clarifies ‘6+3’ key work areas. The 6 refers to key sectors, including transportation, domestic services, online audio-visual services, travel and accommodation, the automotive aftermarket, and inbound consumption, as well as 3 potential areas: performances, sports events, and experiential services. Together with relevant departments, we will focus on these key sectors, improve special support policies, and directly benefit consumers and business operators. At the same time, we will continue to promote ‘opening to the outside and loosening internally’ in the service consumption sector, expanding market access and opening-up fields with the service industry as the focus, and promoting the implementation and effectiveness of pilot opening measures in areas such as value-added telecommunications, biotechnology, and wholly foreign-owned hospitals; we will also clean up unreasonable domestic restrictions in the service sector and expand the supply of high-quality services. 第二，服务消费方面。今年1月，国办出台了《加快培育服务消费新增长点工作方案》，明确了“6+3”工作重点，“6”是指交通、家政、网络视听、旅居、汽车后市场、入境消费等重点领域，还有演出、体育赛事、体验式服务3个潜力领域。我们将会同相关部门，聚焦这些重点领域，完善专项支持政策，直接惠及消费者和经营者。同时，持续推动服务消费领域“对外开放、对内放开”，以服务业为重点扩大市场准入和开放领域，推动增值电信、生物技术、外商独资医院等领域开放试点落地见效；清理国内服务领域不合理限制措施，扩大优质服务供给.
Third, focussing on consumption in lower-tier markets. The Government Work Report states that it is necessary to stimulate the vitality of consumption in lower-tier markets. This market, which is represented by third- and fourth-tier cities and county-level areas, accounts for more than 70% of the national population and about 60% of GDP and total retail sales of consumer goods. Consumption is growing quickly, and its potential still needs to be further tapped. Taking into account the actual conditions of different regions, we will divide the lower-tier market into three categories: core areas, growth areas, and basic areas, and implement targeted and differentiated policies. China is a very large country, and different regions have different population sizes and economic scales. In core areas, i.e., those with populations exceeding 500,000 and GDP exceeding 50 billion yuan, the focus is on expanding incremental consumption, building core commercial districts and high-quality pedestrian streets, encouraging consumption forms such as ‘AI+’, ‘IP+’, and immersive experiences, and introducing domestic and international brands to open regional flagship or first stores. In growth areas, i.e., those with populations exceeding 200,000 and GDP exceeding 10 billion yuan, the focus is on activating existing consumption stock, mainly through upgrading and renovating existing commercial outlets, optimizing the layout of brand chain stores, and developing small shops, time-honoured brands, and workshop-style brands that carry local culture. In basic areas, i.e., those with relatively smaller population and economic scale, the focus is on ensuring baseline consumption, developing county-level comprehensive commercial centers according to local conditions, strengthening their radiation effect toward surrounding rural areas, and accelerating the release of consumption potential in lower-tier markets. 第三，下沉市场消费方面。《政府工作报告》指出，要激发下沉市场消费活力。这个市场是以三四线城市和县域为代表的区域，占全国七成以上的人口、六成的GDP和社零，消费增长快、潜力还有待挖掘。结合各地实际，我们把下沉市场分为核心区域、成长区域、基础区域三类，针对性分类施策。我们国家很大，不同的地区有不同的人口、经济规模。对于核心区域，人口超过50万、GDP超过500亿元，重点是扩大消费增量，打造核心商圈、高品质步行街等，鼓励发展“人工智能+”、“IP+”、沉浸式体验等消费，引进国内外品牌开设区域首店。对于成长区域，人口超过20万、GDP超过100亿元，重点是盘活消费存量，主要是现有商业网点升级改造，推动品牌连锁店等优化布局，发展承载地方文化的小店、老字号、作坊式品牌。对于基础区域，人口和经济总量相对较小，重点是保障消费常量，因地制宜发展县城综合商业中心，增强对乡村的辐射能力，加快释放下沉市场消费潜力。
Next, PBOC’s Pan Gongsheng talked about implementing a “moderately loose” monetary policy. Here’s what he said:
“...we will flexibly and efficiently use various monetary policy tools such as RRR cuts and interest rate cuts, and leverage the integrated and coordinated effects of incremental policies and existing policies, as well as monetary policy and fiscal policy, in order to create a favourable monetary and financial environment for a good start to the 15th FYP period.2026年，人民银行将认真落实好中央部署，继续实施好适度宽松的货币政策，把促进经济稳定增长、物价合理回升作为货币政策的重要考量，灵活高效地运用降准降息等多种货币政策工具，发挥增量政策和存量政策、货币政策与财政政策的集成、协同效应，为实现“十五五”良好开局营造良好的货币金融环境.
First, in terms of quantity, in addition to the traditional reserve requirement tool, the quantity-based monetary policy toolbox also includes reverse repos, the Medium-term Lending Facility (MLF), and the buying and selling of government bonds, among various open market operation tools. We will comprehensively use these short-, medium-, and long-term policy tools to maintain ample market liquidity, ensuring that the growth of the social financing scale and money supply matches the expected targets for economic growth and the overall price level.
Second, in terms of interest rates, we will guide and regulate the interest rate level in accordance with changes in the economic and financial situation and macroeconomic conditions, promoting the overall social financing cost to remain at a low level. We will strengthen the implementation and supervision of interest rate policies, and regulate certain unreasonable market behaviours that could weaken the transmission of monetary policy. Banks will be required to clearly disclose to enterprises the annualized comprehensive financing cost of loans, and intermediary fees in the financing process will be standardized.
Third, in terms of structure, this year the focus of structural monetary policy tools will be on supporting expansion of domestic demand, technological innovation, and small and micro enterprises. By the end of January, the scale of various structural monetary policy tools was about 5.5 trillion yuan, accounting for about 11% of the total assets on the central bank’s balance sheet. At the same time, financial institutions will be guided to scientifically assess risks, optimise the credit structure, and adopt differentiated policies with both support and constraints in order to curb from the financial side the ‘involution-style’ competition in certain industries while supporting economic structural adjustment and transformation and upgrading. Coordination between monetary policy and fiscal policy will be strengthened in areas such as interest subsidies, guarantees, and risk-cost sharing, amplifying policy effects.
Fourth, in terms of the exchange rate, since the beginning of this year the RMB has appreciated somewhat against the US dollar, related to the continued improvement of China’s economy, the overall weakening of the US dollar index, and seasonal corporate foreign exchange settlement, among other factors. At present, the bilateral RMB–USD exchange rate level is within the median range of recent years.
一是在数量上，除了传统意义上的存款准备金工具之外，数量型货币政策工具箱中还包括逆回购、中期借贷便利（MLF）、买卖国债等多种公开市场的操作工具，我们将综合运用这些短中长期的政策工具，保持市场的流动性充裕，使社会融资规模、货币供应量增长同经济增长、价格总水平的预期目标相匹配。二是在利率上，将根据经济金融形势的变化和宏观经济运行情况，引导和调控好利率水平，促进社会综合融资成本低位运行。强化利率政策执行和监督，对于一些不合理的、容易削减货币政策传导的市场行为加强规范。要求银行向企业明确展示贷款的年化综合融资成本，规范融资中间费用。三是在结构上，今年结构性货币政策工具的重点将聚焦于支持扩大内需、科技创新和中小微企业。1月末各项结构性货币政策工具规模约为5.5万亿元，在中央银行的资产负债表中占央行总资产的大概11%。同时，引导金融机构科学评估风险，优化信贷结构，分类施策、有扶有控，从金融的角度抑制一些行业的“内卷式”竞争，支持经济结构调整和转型升级。加强货币政策与财政政策在贴息、担保和风险成本分担等方面的协同配合，放大政策效果。四是在汇率上，今年以来人民币对美元汇率有所升值，与我国经济持续向好、美元指数总体走弱、企业季节性结汇等有关，目前人民币对美元双边的汇率水平处于近些年来的中值区间.
He then added:
China has neither the need nor the intention to gain a competitive advantage in trade through currency devaluation. The PBOC’s position has always been clear: to uphold the decisive role of the market in exchange rate formation, maintain exchange rate flexibility, strengthen expectation guidance, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level. In specific scenarios, macro-prudential management tools will be used to correct the market’s ‘herding effect’ and negative self-reinforcing behaviour. Our recent adjustment to the foreign exchange risk reserve ratio for forward foreign exchange sales is also based on such international rules and practices. The factors influencing exchange rates are very complex, such as geopolitics, sudden events, monetary policy, and financial markets. Currently, changes in these factors internationally are significant and uncertainties are strong. For example, recent military strikes by the United States and Israel against Iran have sharply increased risk-aversion sentiment in international financial markets, causing sharp fluctuations in the US dollar index and the exchange rates of major economies’ currencies. Over the past week, this phenomenon has been very evident in international financial markets. After many years of development, participants in China’s foreign exchange market have become more mature, and the market has become more resilient. The PBOC encourages financial institutions to provide services for enterprises to manage exchange-rate risks. At present, the proportion of enterprises using exchange-rate hedging tools and the proportion of RMB used in cross-border trade settlements have both reached 30%. Combined, this exceeds 60%, meaning that roughly 60% of import and export trade is relatively less affected by exchange-rate fluctuations, and this proportion is expected to increase further this year. 国没有必要，也无意通过汇率贬值获取贸易竞争优势。人民银行的立场始终是清晰的，坚持市场在汇率形成之中的决定性作用，保持汇率弹性，加强预期引导，保持人民币汇率在合理均衡水平上的基本稳定。在特定情景下，使用宏观审慎管理工具校正市场的“羊群效应”和负向的自我强化。前几天我们调整了远期售汇业务的外汇风险准备金率，也是基于这样的国际规则和实践。率的影响因素是非常复杂的，比如地缘政治、突发事件、货币政策、金融市场等，目前国际上这些因素的变化非常大，不确定性也很强，比如，近日美国和以色列对伊朗发动军事打击，导致国际金融市场避险情绪大幅上升，美元指数及主要经济体货币的汇率也剧烈波动。过去这一周，这种现象在国际金融市场上是非常明显的。经过多年的发展，中国外汇市场的参与主体更加成熟，市场更具韧性。人民银行鼓励金融机构为企业管理汇率风险提供服务，目前企业利用汇率避险工具的比例和在跨境贸易收付中使用人民币的比例均已经达到30%，加在一起超过了60%，也就是说合计相当于约60%的进出口贸易受汇率变动的影响较小，今年这一比例还有望进一步提升。
Finally, on monetary policy, he added that:
At present China’s monetary policy adopts a parallel approach of quantity-based and price-based regulation. Going forward, quantity-based intermediate targets will gradually be de-emphasised, with aggregate financial indicators treated more as observational, reference, and expectational metrics, creating conditions for interest rate regulation to play a stronger role. Regarding monetary policy tools, the monetary policy toolbox will be continuously enriched, and the base money injection mechanism combining short-, medium-, and long-term tools will be improved. The 7-day reverse repo rate in open market operations will better play its role as the policy interest rate, guiding short-term money market interest rates to operate more closely around the policy rate. Treasury bond purchase and sale operations will continue, and the reserve requirement system will be further refined. Structural monetary policy tools will be optimized with a focus on key priorities, in a reasonable and measured way, with both additions and withdrawals as appropriate. Regarding the transmission mechanism, the market-oriented mechanisms for interest rate formation, regulation, and transmission will be improved, ensuring smooth transmission from the policy interest rate to market benchmark interest rates, and then to various financial market interest rates. The policy communication mechanism will be improved, continuously increasing the transparency of monetary policy. 货币政策的目标方面，目前我国货币政策采用数量型和价格型调控并行的方式，未来将逐步淡化数量型的中介目标，把金融总量更多作为观测性、参考性、预期性指标，为更好发挥利率调控的作用创造条件。货币政策的工具方面，不断丰富货币政策工具箱，完善短中长期搭配的基础货币投放机制。发挥好公开市场7天期逆回购利率的政策利率作用，引导短期货币市场利率更好地围绕政策利率运行。继续开展国债买卖操作，完善存款准备金制度。聚焦重点、合理适度、有进有退，优化结构性货币政策工具体系。在传导机制方面，健全市场化的利率形成、调控和传导机制，畅通由政策利率向市场基准利率、再到各种金融市场利率的传导。健全政策沟通机制，不断提高货币政策的透明度.
Next, CSRC’s Wu Qing outlined the following tasks for the year:
First, ensuring stability and improving the market mechanism and ecosystem for long-term capital investment.
Second, focus on deepening comprehensive reform of investment and financing, further improve the basic institutional framework of the capital market, actively develop diversified equity financing, expand exit channels for private equity and venture capital funds, strengthen the construction of the bond, REITs, and asset securitization markets, and continuously enrich products and tools, so as to serve the development of new-quality productive forces more precisely and effectively. Steadily develop the futures and derivatives markets, better meeting the risk management needs of enterprises and residents.
Third, listed companies will have higher quality and a more optimised structure. On the basis of continuously and firmly grasping the ‘authenticity’ of listed companies, we will further enhance their ‘investability’. Improve incentive and constraint mechanisms, promote listed companies to enhance their corporate governance, strengthen dividends and share buybacks, continuously raise investment value and investor returns, invigorate the mergers and acquisitions and restructuring market, promote efficient allocation of resources, and help cultivate more world-class enterprises.
Fourth, regulatory enforcement and investor protection will be stronger and more effective. This is our core function, which cannot be weakened and can only be strengthened. We will adhere to governing the market according to law, promote the improvement of the legal and institutional system of the capital market, and always advance market reform and development on the track of rule of law. We will continue to implement the ‘five major supervisions’, accelerate the advancement of digitalized and intelligent regulation, and precisely and forcefully crack down on serious illegal acts such as financial fraud, market manipulation, and insider trading. We will continuously improve the system for protecting investors’ lawful rights and interests, effectively enhancing investors’ sense of gain.
Fifth, opening-up will move toward deeper levels and higher standards. At present, international investors’ demand for diversified asset allocation is increasing, and the attractiveness of ‘Chinese assets’ has clearly improved. We will take the creation of a first-class business environment that is market-oriented, law-based, and internationalised as the starting point, and take improving the convenience of cross-border investment and financing as the direction, further promoting two-way opening in areas such as markets, products, services, and institutions to a new level, and fostering a more transparent, stable, and predictable market environment. At the same time, we will deeply participate in reforms of international financial governance, strengthen cross-border regulatory and enforcement cooperation, and continuously improve regulatory and risk prevention capabilities under conditions of opening-up.
一是市场更具韧性、更加稳健。稳是大局、是前提，是资本市场高质量发展的必然要求。我们将继续推动发挥好各方合力，健全“长钱长投”的市场机制和生态，完善中国特色稳市机制建设，丰富跨周期逆周期调节的手段和机制，进一步增强市场内在稳定性。二是制度更加包容、更加适配。我们将围绕深化投融资综合改革，进一步完善资本市场基础制度，积极发展多元股权融资，拓展私募股权和创投基金退出渠道，加强债券、REITs和资产证券化市场建设，不断丰富产品和工具，更加精准有效地服务新质生产力发展。稳步发展期货和衍生品市场，更好满足企业和居民风险管理需求。三是上市公司质量更高、结构更优。重点是在持续狠抓上市公司“真实性”基础上，进一步提升“可投性”。完善激励约束机制，促进上市公司提升治理水平，加强分红回购，不断提升投资价值和投资者回报，活跃并购重组市场，促进资源高效配置，助力培育更多世界一流企业。四是监管执法和投资者保护更加有力、更加有效。这是我们的核心职能，不能削弱，只能加强。我们将坚持依法治市，推动健全资本市场法律制度体系，始终在法治化轨道上推进市场改革发展。继续落实好“五大监管”，加快推进监管数字化、智能化，精准有力打击财务造假、操纵市场、内幕交易等恶性违法行为。持续完善投资者合法权益保护体系，有效提升投资者获得感。五是对外开放迈向更深层次、更高水平。当前，国际投资者资产配置多元化需求日益增强，“中国资产”吸引力明显提高。我们将以打造一流的市场化、法治化、国际化营商环境为抓手，以提升跨境投融资便利度为方向，进一步推动市场、产品、服务、机构等方面的双向开放迈上新台阶，营造更加透明、稳定、可预期的市场环境。同时，深入参与国际金融治理改革，加强跨境监管执法合作，持续提高开放条件下的监管和风险防控能力.
When talking about how capital markets can further support China’s technology and industrial sectors, Wu Qing said that two new measures will be launched soon.
First, deepening reform of the ChiNext board. Under this, he made three points. First, expand the inclusiveness and coverage of the system. Add a set of more precise and more inclusive listing standards, increasing support for enterprises in new industries, new business forms, and new technologies. Actively support high-quality innovative and entrepreneurial enterprises in areas such as new consumption and modern services to issue and list shares on the ChiNext board. Second, replicate and promote the beneficial experience of the STAR Market reforms to the ChiNext board. This will focus on introducing reform measures on ChiNext such as pre-review of IPOs for eligible high-quality innovative enterprises, especially enterprises that have made breakthroughs in key core technologies, thereby allowing eligible companies already under review to raise additional capital from existing shareholders, and optimising pricing for new share issuance, among other measures. Third, comprehensively promote the improvement of the quality of ChiNext-listed companies. Establish and improve institutional mechanisms covering the whole process, i.e., from listing recommendation, selection and review, to full-process supervision, so as to better serve the development of the local economy and the private economy. At present, the overall plan for deepening ChiNext reform has basically taken shape, and after further refinement it will be released and implemented at an appropriate time. 第一项是深化创业板改革。总的考虑是，进一步突出创业板功能定位，更好支持包括新兴产业、未来产业在内的实体经济高质量发展。一是拓展制度的包容性和覆盖面。增设一套更加精准、更为包容的上市标准，加力支持新产业、新业态、新技术企业发展。积极支持新型消费、现代服务业等优质创新创业企业在创业板发行上市。二是将科创板改革的有益经验复制推广到创业板。重点是在创业板推出对符合条件的优质创新企业，特别是在关键核心技术上有突破的企业实施IPO预先审阅、允许符合条件的在审企业面向老股东增资扩股、优化新股发行定价等改革举措。三是全方位推动提升创业板上市公司质量。建立健全从推荐上市、遴选审核到全过程监管的制度机制，更好服务地方经济和民营经济发展。目前，深化创业板改革的总体方案已基本成型，将进一步完善后择机发布实施.
Second, optimise the refinancing mechanism. Before the Spring Festival, the Shanghai, Shenzhen, and Beijing stock exchanges had already introduced a number of measures to optimise refinancing. We will further optimise the review and registration mechanisms for refinancing at the institutional and regulatory level, focusing on improving convenience. First, further enhance the inclusiveness and adaptability of institutional rules. This mainly includes: optimizing the criteria for identifying strategic investors to facilitate the participation of medium- and long-term funds such as social security funds, insurance funds, and public funds; introducing shelf registration to guide rational and effective financing; improving the fixed-price private placement mechanism to push stock private placement prices closer to market prices, better balancing the interests between listed companies and investors; further optimizing the simplified refinancing procedure, etc. Second, further highlight the orientation of ‘supporting excellence and supporting technology’. For high-quality listed companies with standardized governance and operations and high market recognition, review efficiency will be significantly improved. The existing ‘light-asset, high-R&D investment’ recognition standards of the STAR Market and ChiNext board will be further expanded to the main board. Optimization measures such as loosening limits on refinancing for working capital when used for R&D investment and shortening the refinancing interval period will be implemented, so as to better support high-quality technology innovation enterprises in refinancing. Third, further strengthen refinancing supervision. Supervision will be strengthened across the entire process, from disclosure of refinancing proposals, application acceptance, review and registration, to the use of raised funds. Law enforcement will be intensified, and illegal acts such as deceptive refinancing and improperly changing the use of raised funds will be strictly punished in accordance with the law, effectively protecting the lawful rights and interests of investors. 第二项是优化再融资机制。再融资是支持上市公司做优做强、促进创新资本形成和创新动能培育的重要制度，也是资本市场的重要功能。春节前，沪深北三家交易所已推出一批优化再融资的措施，我们将进一步在制度规则层面，优化再融资审核注册机制，着力提高便利度。一是进一步提升制度规则的包容性、适应性。主要包括：优化战略投资者认定标准，便利社保、保险、公募基金等中长期资金参与；推出储架发行，引导理性融资、有效融资；完善锁价定增机制，推动股票定增价格向市场价格靠拢，更好平衡上市公司与投资者之间的利益关系；进一步优化再融资简易程序，等等。二是进一步突出“扶优、扶科”导向。对于治理和经营规范、市场认可度高的优质上市公司，大幅提升审核效率。将现行科创板、创业板“轻资产、高研发投入”认定标准进一步拓展至主板，实施好放宽再融资补流限额用于研发投入、缩短再融资间隔期等优化措施，更好支持优质科技创新企业再融资。三是进一步加强再融资监管。强化从预案披露、申报受理、审核注册到募集资金使用的全过程监管，加大执法力度，依法严惩“忽悠式”再融资、违规变更募集资金用途等违法违规行为，切实保护好投资者合法权益.
Wu then added:
“Enhancing the inclusiveness and adaptability of the capital market system is a systematic project. We will adhere to a gradual and quality-first approach, strictly control the entry point for IPOs, strengthen the ‘gatekeeper’ responsibility of intermediaries, strictly prevent ‘applications with hidden problems’ and herd-style rushes to list, and better coordinate investment and financing development to achieve a virtuous cycle of deepening reform, enhancing functions, and stabilising the market. It should be recognised that technological innovation involves high investment, long cycles, and significant risks. A company’s success is often a process of accumulating experience and weathering challenges. Similarly, the inclusive reform of the capital market to support technological innovation is a continuous and exploratory process. We hope that all market participants will offer more understanding and tolerance, and jointly create a positive atmosphere that encourages innovation, rewards success, and tolerates failure. 提高资本市场制度包容性、适应性是一项系统工程。我们将坚持循序渐进、质量优先，把好发行上市入口关，压实中介机构“看门人”责任，严防“带病申报”“一哄而上”，更好统筹投资与融资协调发展，努力实现深化改革、提升功能与稳定市场的良性互动。应该看到，科技创新投入高、周期长、风险大，企业成功往往是厚积薄发、大浪淘沙的过程，资本市场支持科技创新的包容性改革同样是一个不断前行、逐步探索的过程，希望市场各方给予更多理解和包容，共同创造鼓励创新、激励成功、宽容失败的良好氛围。谢谢！
Some other useful information from Pan Gongsheng:
The RMB appreciated by nearly 4.5% against the US dollar in 2025
China’s 10-year Treasury bond yield is “stable” at around 1.8%
Risks in key areas have continued to recede. Significant phased progress has been made in resolving the debt risks of financing platforms. This work has been underway for nearly three years. By the end of last year, compared to early 2023, both the number of financing platforms and the scale of their debt had fallen by more than 70%. We have supported and coordinated with financial regulators and local governments, employing a combination of approaches, including online remediation, mergers and restructuring, and market exit, to drive reform and risk mitigation at small and medium-sized financial institutions. The number of high-risk small and medium-sized financial institutions has dropped by half from its peak. At the same time, we have worked with relevant authorities to maintain a high-pressure crackdown on illegal financial activities such as illegal fundraising, speculative trading in virtual currencies, and underground banking.” 三是重点领域风险持续收敛。融资平台债务风险化解取得重要阶段性成效。这项工作我们开展差不多将近三年的时间。到去年末，与2023年初相比，融资平台数量和债务规模均下降超过70%。我们支持配合金融监管部门和地方政府，综合运用在线修复、兼并重组、市场退出等方式，推动中小金融机构改革化险，高风险中小金融机构数量较峰值下降一半。同时，我们会同相关部门对非法集资、虚拟货币交易炒作、地下钱庄等非法金融活动保持高压打击态势.
Pan warned of a range of risks that the PBOC is looking to tackle. A significant point among those was external risks. He said:
“Currently, the external environment is becoming increasingly complex and severe, with frequent geopolitical and trade conflicts. The inflation trends and monetary policy adjustments of major developed economies remain highly uncertain, and the risk of volatility in international financial markets is intensifying. These risks may spill over into China’s financial markets through channels such as external demand, cross-border capital flows, and investor expectations. We will closely monitor and assess the impact of external shocks and utilise macro-prudential and financial stability policy tools to promptly mitigate or prevent the contagion of risks.” 四是防范外部冲击对我国的外溢影响。当前，外部环境更趋复杂严峻，地缘冲突和经贸冲突多发频发，主要发达经济体通胀走势和货币政策调整仍有很强的不确定性，国际金融市场波动风险加剧，可能通过外需、跨境资金流动、投资者预期等渠道，对我国金融市场产生外溢影响。我们将密切关注评估外部冲击的影响，运用宏观审慎和金融稳定政策工具，及时弱化或阻断风险传染.