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The following is the China’s financial stability report in 2020 From People’s Bank of China recommended by And this article belongs to the classification: China’s economy, research report.

Recently, the people’s Bank of China issued the “China financial stability report (2020)”, which comprehensively evaluated the stability of China’s financial system since 2019. According to the report, since 2019, the global political and economic situation has become more complex and severe, and the external uncertainty faced by China’s economic and financial system has increased. In the face of complex situations, the financial system resolutely implements the decision-making and deployment of the CPC Central Committee and the State Council, adheres to the general keynote of seeking progress while maintaining stability, adheres to the new development concept, adheres to the three tasks of serving the real economy, preventing and controlling financial risks, and deepening financial reform, adheres to the implementation of a stable monetary policy, resolutely fights the battle to prevent and resolve major financial risks, and continuously deepens the supply side knot Structural reform and continuous improvement of financial management and services have created a good monetary and financial environment for promoting high-quality economic development.

China’s hitherto unknown outbreak of novel coronavirus pneumonia has brought unprecedented impact on China and the global economy, the report said in 2020. The world economy is in serious recession, the supply chain circulation of industrial chain is blocked, international trade and investment are shrinking, and the commodity market is in turmoil. The financial management departments firmly implement the “six stabilities” and “six guarantees” work deployment of the Party Central Committee and the State Council, and take various countermeasures in a timely manner, such as maintaining reasonable and sufficient liquidity, guiding the market interest rate downward, increasing the amount of re discount of loans, introducing the credit loan support plan for small and micro enterprises, and implementing the policy of phased loan repayment of principal and interest for small and medium-sized enterprises, so as to fully hedge the impact of the epidemic. Under the effect of a series of policies and measures, financial support has achieved positive results in the overall promotion of epidemic prevention and control and economic and social development. In the first three quarters of the year, the financial system has been running smoothly, which strongly supports the positive growth of China’s economy and the national economy continues to recover steadily, which fully demonstrates the strong resilience and huge room for maneuver of China’s economy and finance.

According to the report, the world economy is still in a period of deep adjustment after the international financial crisis. Long term contradictions and short-term problems are intertwined, structural factors and cyclical factors interact, economic and political issues are interrelated. In addition, the situation of overseas epidemic is still severe and protectionism and unilateralism are prevalent in some countries We have to seek development in a more unstable and uncertain world. On the domestic side, China is in the crucial period of transforming the development mode, optimizing the economic structure and transforming the driving force of growth. Structural, institutional and cyclical issues are intertwined. There are still some weak points in achieving high-quality development. In addition, affected by the epidemic situation, some enterprises have increased the risk of default on debt, which may be transmitted to the financial system, and the difficulties and risks faced by the financial sector are increasing 。

The report pointed out that the people’s Bank of China, together with relevant departments, resolutely fought the battle of preventing and resolving major financial risks and achieved important results. First, the excessive rise of macro leverage ratio has been curbed. On the macro level, we should manage the general monetary gate and continue to promote structural deleveraging. In novel coronavirus pneumonia, the effective control of the excessive growth of the macro leverage rate has won the operating space for coping with the new period of the new crown pneumonia. Second, the risks of high-risk financial institutions have been dealt with in an orderly manner. We have implemented classified policies for the subcontractor bank, Hengfeng bank and Jinzhou bank, which have solved major risks in an orderly manner and strengthened market discipline. Third, corporate debt default risk has been properly dealt with. We will promote banking financial institutions to continue to increase the handling of non-performing loans, and constantly improve the mechanism for handling default on bonds. Fourth, risks such as Internet Finance and illegal fund-raising have been comprehensively managed. The number and scale of P2P online lending institutions in China have dropped sharply, illegal fund-raising and other activities have been severely cracked down, and various trading places have been cleaned up and rectified in a steady and orderly manner. Fifthly, the system construction of preventing and resolving financial risks has been vigorously promoted. By introducing the relevant supporting rules of the new asset management regulations and promoting the smooth implementation, the disordered development of shadow banking has been effectively managed. We will initially establish an overall regulatory framework for systemically important financial institutions, financial holding companies and financial infrastructure, and solidly promote the comprehensive statistics of the financial industry. The reform of the capital market was deepened in an all-round way, and the new securities law began to be implemented. In general, after governance, the incremental risk in key areas of China’s financial system has been effectively controlled, the stock risk has been gradually resolved, and the overall financial risk has been controllable, keeping the bottom line of no systemic financial risk.

In the face of the complex situation of economic and financial operation at home and abroad, the basic characteristics of China’s economy with sufficient potential, strong resilience, large space for maneuver and many policy instruments have not changed, and China’s determination to deepen reform and expand opening up has not changed. We should adhere to a comprehensive, dialectical and long-term view of the current difficulties, risks and challenges, give full play to the breakthrough and leading role of reform, and promote the financial system to better serve the overall economic and social development. We will adhere to the general tone of seeking progress while maintaining stability, and support the formation of a new development pattern with the domestic big cycle as the main body and the domestic and international dual circulation promoting each other. We should do a solid job in the “six stability” work, fully implement the “six guarantees” task, improve the cross cycle design and regulation of macro-control, increase the strength of monetary and financial policies to support the real economy, help enterprises, especially small and medium-sized and micro enterprises, tide over difficulties, promote reasonable profit sharing of financial institutions, and promote the healthy development of economic and financial virtuous circle. We will continue to effectively prevent and resolve major financial risks, accurately handle risks in key areas, fill in the shortcomings of the regulatory system, further compact the responsibilities of all parties, firmly hold the bottom line of no systemic financial risks, achieve a long-term balance between stable growth and risk prevention, and create favorable conditions for successfully completing the main objectives and tasks of the 13th five year plan, overcoming poverty and building a moderately prosperous society in an all-round way Financial environment.

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