Zhongxin Finance, February 11. On the 11th, the central bank released the "China Monetary Policy Implementation Report for the Fourth Quarter of 2021" (hereinafter referred to as the "Report"), proposing to strengthen expectation management and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.

The foreign exchange market shall be developed, and enterprises and financial institutions shall be guided to establish the concept of "risk neutrality".

　　The "Report" proposes to improve the formation and transmission mechanism of market-oriented interest rates, improve the central bank's policy interest rate system, and guide market interest rates to fluctuate around policy interest rates.

Give full play to the efficiency of LPR reform, give full play to the role of LPR reform in optimizing resource allocation, promote financial institutions to allocate more financial resources to small and micro enterprises in a market-oriented manner, enhance the competitiveness of the credit market for small and micro enterprises, and promote the integration of small and micro enterprises. Financing costs have been steady with some declines.

　　Supervise the implementation of regulatory measures to optimize deposit interest rates,

standardize the order of competition in the deposit market, stabilize the cost of bank liabilities, guide the decline in corporate loan interest rates

, and effectively promote the reduction of comprehensive financing costs for enterprises.

We will steadily deepen the market-oriented reform of the exchange rate, adhere to a managed floating exchange rate system based on market supply and demand and adjusted with reference to a basket of currencies, enhance the flexibility of the RMB exchange rate, and give full play to the function of the exchange rate as an automatic stabilizer for macroeconomic adjustment and balance of payments.

We will strengthen expectation management and keep the RMB exchange rate basically stable at a reasonable and balanced level.

　　Develop the foreign exchange market, guide enterprises and financial institutions to establish the concept of "risk neutrality", guide financial institutions to actively provide exchange rate hedging services for small and medium-sized enterprises based on the principle of actual demand and the principle of risk neutrality,

reduce exchange rate hedging costs for small and medium-sized enterprises, and strengthen Risk management

of its own foreign exchange business to maintain the stable and healthy development of the foreign exchange market.

　　Continue to steadily advance the internationalization of the RMB, further expand the use of the RMB in cross-border trade and investment, deepen foreign currency cooperation, and develop the offshore RMB market.

Carry out high-level opening-up pilot projects for cross-border trade and investment, improve the degree of liberalization and facilitation of cross-border trade and investment, and steadily promote the convertibility of RMB capital account.

　　The "Report" proposes to improve the financial risk prevention, early warning, disposal, and accountability system, and build a long-term mechanism for preventing and resolving financial risks.

We will further improve the macro-prudential management system, and improve systemic risk monitoring, assessment and early warning capabilities.

Strengthen the supervision of systemically important financial institutions, accelerate the promotion of global systemically important banks in my country to establish and improve a long-term mechanism for the management of total loss absorption capacity, and effectively improve their risk resistance capabilities.

　　The role of the deposit insurance market-based disposal platform shall be further utilized, various market-based and legal-based methods shall be explored, and

small and medium-sized banks shall be supported to mitigate risks and replenish capital

.

Accelerate the improvement of the modern financial supervision system, make up for the shortcomings of the supervision system, and strengthen the supervision of financial holding companies.

　　Continue to follow the guideline of "stabilizing the overall situation, coordinating and coordinating, implementing policies by category, and disposing of bombs accurately", do a

good job in the risk disposal and resolution of key institutions in a stable and orderly manner, improve the efficiency of supervision and coordination, and resolutely curb the rebound of various risks

.

Consolidate the responsibilities of all parties, establish and improve the fiscal and financial risk disposal mechanism in which the main leaders of the local party and government are responsible, and form a joint force in risk disposal.

We will improve the financial risk accountability mechanism, seriously pursue accountability for major financial risks, and effectively prevent moral hazard.

(Finish)