From January 3 to 4, the People’s Bank of China (PBOC) held the 2025 work conference. The conference thoroughly implemented the guidelines of the 20th National Congress of the Communist Party of China (CPC), the second and third plenary sessions of the 20th CPC Central Committee, and the Central Economic Work Conference, reviewed the PBOC’s work in 2024, analyzed the current situation, and made arrangements for 2025. PBOC Governor Pan Gongsheng attended and addressed the conference. Zhu Hexin, Qu Jishan, Xuan Changneng, Lu Lei, and Tao Ling were also present.

It was noted at the conference that in 2024, under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and following the decisions and arrangements of the CPC Central Committee and the State Council, the PBOC effectively fulfilled its responsibilities in macro adjustments and financial management, strengthened the counter-cyclical adjustments, enhanced policy precision, supported the recovery of the real economy, and ensured the stable operation of the financial market. Moreover, it continued to deepen the supply-side structural reform of the financial sector, deeply engaged in international financial governance and cooperation, earnestly strengthened financial management and services, smoothly implemented the task of institutional reform, and deepened full and rigorous Party self-governance. As a result, new progress and achievements have been made in all aspects.

First, the PBOC has ensured stronger financial support for the real economy. It implemented multiple significant monetary policy adjustments and introduced a package of incremental financial policies to promote reasonable growth in money and credit. It lowered the required reserve ratio (RRR) twice to keep liquidity adequate at a reasonable level. The policy rate was also lowered twice, which helped reduce the overall financing costs for the real economy and brought down the interest rate on newly issued corporate loans to historic low. The PBOC improved the monetary policy framework, with central bank policy rates made clear and the loan prime rate formation mechanism enhanced. A mix of policy measures were taken to keep the RMB exchange rate basically stable. In addition, the PBOC made solid progress in technology finance, green finance, inclusive finance, old-age finance and digital finance and strengthened financial services for major national strategies, key areas and weak links, resulting in significantly higher growth rates in inclusive micro and small business loans, loans to small and medium-sized technological enterprises, medium and long-term loans to the manufacturing sector, and green loans than the average growth rate of loans over the same period.

Second, the PBOC has improved and leveraged macro-prudential management to effectively forestall and defuse financial risks in key areas. It improved macro-prudential management of real estate finance to support risk mitigation in the real estate market and promote its stable and healthy development. The PBOC launched two new tools: the securities, funds, and insurance companies swap facility, as well as the central bank lending facility for share buybacks and shareholding increases, to support the stable development of the capital market. Financial efforts to defuse debt risks associated with local government financing vehicles achieved significant progress. Additionally, the PBOC steadily advanced risk resolution in key institutions and key areas and continued to improve the financial risk monitoring, assessment, and early warning system.

Third, the PBOC has continued to advance financial reform and opening-up and deepen global financial governance and cooperation. It accelerated the development of a strong currency, a strong central bank, strong financial institutions, strong international financial centers, strong financial supervision, and a high-caliber team of financial talents for building China into a financial powerhouse. It advanced the development of financial markets by improving the pricing mechanism and underwriter exit mechanism in the bond market, strengthening investor access management, and enhancing institutional construction and regulation of money, bill and derivatives markets. The PBOC steadily expanded the institutional opening-up of the financial sector and optimized the Bond Connect and Swap Connect schemes. As a result, Chinese bonds now account for the third-largest share in the Bloomberg Barclays Global Aggregate Index. In addition, the PBOC introduced new measures for deepening financial cooperation between the Chinese mainland and Hong Kong, including three measures to promote mutual access and three measures to enhance facilitation. The PBOC also promoted the reform of banks’ foreign exchange business, expanded the pilot program of high-level opening-up of cross-border trade and investment, and improved the policies for piloting integrated RMB and foreign currency cash pooling for multinational corporations. The internationalization of the RMB was steadily improved, with notable improvements in its functions such as international payment and financing. Furthermore, the PBOC duly played its role in the China-US and China-EU Financial Working Groups, promoted global financial policy coordination, and supported the International Monetary Fund (IMF) in establishing a regional center in Shanghai.

Fourth, the PBOC has further enhanced financial management and services. It completed the revision of the Anti-Money Laundering Law and made progress in amending key legislation such as the Law on the People’s Bank of China. The PBOC launched a pilot program for the national basic financial database at the provincial level. It continuously optimized payment services, greatly improving the payment environment for overseas visitors in China. The PBOC also advanced the improvement in cash services and cracked down on the refusal of cash payments. It steadily moved ahead with e-CNY research and application, achieved phased progress in the construction of the National Treasury project, launched a national capital flow credit information sharing platform for micro, small, and medium-sized enterprises for trial operation, and smoothly implemented institutional reform. Moreover, the role of the labour union and the Communist Youth League as a bridge was further leveraged, and the quality and efficiency of internal audit supervision, services for the retired staff, logistics, and security management were improved.

Fifth, the PBOC has deepened full and rigorous Party self-governance. It made the study and implementation of the guidelines of General Secretary Xi Jinping’s important speeches and instructions its top political priority and continued to consolidate and expand the achievements of the theoretical study program. The PBOC earnestly studied and implemented the guidelines of General Secretary Xi Jinping’s important speeches on disciplinary inspection, fully cooperated with the third round of disciplinary inspection of the 20th CPC Central Committee, adopted a serious approach to tackling problems identified in the inspection and developing rectification plans and lists of problems, tasks and responsibilities, and implemented corrective actions once issues were identified during the inspection, achieving significant progress. It upheld a correct approach to personnel selection and appointment and made overall plans for developing the team of officials. It also conscientiously conducted Party discipline education and strengthened efforts to improve the conduct, enforce the discipline, and fight corruption.

It was stressed at the conference that the PBOC system must align its thoughts and actions with the judgments, decisions, and arrangements of the CPC Central Committee. Upholding the general principle of pursuing progress while ensuring stability, the PBOC should fully, faithfully and comprehensively apply the new development philosophy, implement the appropriately accommodative monetary policy, forestall and defuse financial risks in key areas, and further deepen financial reform and high-standard opening-up. Moreover, it should focus on expanding domestic demand, stabilizing expectations, and stimulating economic vitality to create a favorable monetary and financial environment for promoting sustained economic recovery. The PBOC will focus on the following tasks in 2025:

First, the PBOC will firmly deepen full and rigorous Party self-governance. It will make the study and implementation of the guidelines of General Secretary Xi Jinping’s important speeches and instructions its top political priority. The achievements of the theoretical study program will be consolidated and expanded. It will rigorously address problems identified in the central inspection, assess the effectiveness of the rectification, and ensure the application of rectification results. The PBOC will strengthen the development of the team of officials, select and appoint strong and competent leadership at all levels, and encourage enterprising spirit and hard work, sense of responsibility and proactive efforts. It will also advance regular and long-term Party discipline education and further deepen the rectification of work styles, enforcement of discipline, and combating corruption.

Second, the PBOC will implement appropriately accommodative monetary policy to create a favorable monetary and financial environment for stable economic growth. It will use a mix of monetary policy tools and cut the RRR and interest rates based on domestic and international economic and financial conditions and financial market developments to ensure adequate liquidity, stable growth in financial aggregates, and alignment of the scale of social financing and money supply with the expected goals of economic growth and overall price levels. The PBOC will strike a balance between existing and new resources and mobilize existing financial resources to improve the efficiency of fund utilization. It will also keep the RMB exchange rate basically stable at an adaptive and equilibrium level and firmly guard against the risks of exchange rate overshooting.

Third, the PBOC will coordinate efforts to ensure progress in technology finance, green finance, inclusive finance, old-age finance and digital finance, thereby better supporting high-quality economic development. It will improve the top-level institutional arrangements for the five major areas of finance, standardize statistics systems, strengthen assessment and evaluation, and focus on major strategies, key areas and weak links of the national economy to further enhance the intensity, sustainability, and professionalism of financial support. Following the principle of remaining targeted, reasonable, moderate, and flexible, the PBOC will use structural monetary policy tools in a scientific manner, optimize the toolkit, and strengthen coordination with fiscal policies to increase financial support for sci-tech innovation and promoting consumption. Efforts will also be made to actively expand financing channels and support enterprises in raising funds through bonds, equities and other markets to elevate the quality and efficiency of financial services.

Fourth, the PBOC will give full play to its role in conducting macro-prudential management and safeguarding financial stability to defend the bottom line whereby no systemic financial risks will occur. It will improve the macro-prudential policy framework, strengthen the analysis of systemic financial risks, and enrich the macro-prudential policy toolkit. The PBOC will improve financial market risk monitoring, assessment, early warning and response mechanisms to maintain financial market stability. It will support the resolution of risks in small and medium-sized banks based on market principles and the rule of law, continue to provide financial support for addressing debt risks associated with local government financing vehicles, and strengthen macro-prudential management of real estate finance to support the establishment of a new development model for the real estate sector. Additionally, efforts will be made to make good and full use of the two structural monetary policy tools designed to support the capital market and explore regular institutional arrangements to ensure the stable operation of the capital market.

Fifth, the PBOC will steadily advance financial reform and opening-up to enhance RMB internationalization. It will enhance the bond market’s functions and its ability to serve the real economy and strengthen financial infrastructure development and coordinated regulation. Efforts will focus on expanding the high-level opening-up of the financial sector in an orderly manner, supporting the development of Shanghai International Financial Center, consolidating and enhancing Hong Kong’s position as an international financial center, and ensuring financial security in conditions of openness. The PBOC will promote RMB internationalization in a stable and prudent manner, further enhance the role of the RMB as an international currency, and leverage currency swaps and RMB clearing banks to promote the development of the offshore RMB market. It will enhance the quality and effectiveness of policies to facilitate cross-border fund settlement, such as cash pooling for multinational corporations, advance the reform of foreign exchange administration for foreign direct investment and prudently manage foreign exchange reserves.

Sixth, the PBOC will deeply engage in global financial governance and cooperation. It will promote global macroeconomic policy coordination and participate in the development of international financial rules through such multilateral platforms as the G20. In addition, the PBOC will continue to accelerate the IMF quota reform and support the development and an active role of the IMF Shanghai Regional Center.

Seventh, the PBOC will further optimize its financial management and services. Legislative efforts will be strengthened for the central bank to fulfill its responsibilities. The PBOC will improve the system of multi-tiered and diversified payment services, advance the integration of information technology systems in an orderly manner, vigorously develop the multi-tired credit reporting market, and continue to enhance the central bank's financial services at the county level. It will work to ensure solid progress in areas such as economic and financial research, comprehensive financial statistics, currency issuance, e-CNY research, state treasury management, and international assessment of anti-money laundering. The PBOC will also comprehensively strengthen internal management, give full play to the role of people’s organizations such as the labour union and the Communist Youth League in unifying and mobilizing staff, and enhance internal audit supervision, services for the retired staff, logistics, centralized procurement, and security management.

It was pointed out at the conference that in 2025, the concluding year of the 14th Five-Year Plan, the PBOC system must follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, resolutely advocate the establishment of both Comrade Xi Jinping’s core position on the Party Central Committee and in the Party as a whole and the guiding role of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and firmly uphold Comrade Xi Jinping’s core position on the Party Central Committee and in the Party as a whole and uphold the Central Committee’s authority and its centralized, unified leadership. It shall conscientiously implement the decisions and arrangements made by the CPC Central Committee and the State Council, adopt a proactive approach to overcome challenges, and support Chinese modernization with high-quality financial development.

Attending the conference were the leadership of the State Administration of Foreign Exchange, the major leading officials of the PBOC departments, branches, and affiliated institutions, and the leading officials of the discipline inspection group at the PBOC. Representatives from the Office of the Central Financial and Economic Affairs Commission, the Office of the Central Financial Commission, the General Office of the State Council, and the National Audit Office were invited to the conference.