In order to maintain stable liquidity at the end of the year, the central bank continued to carry out reverse repurchase operations——
Monetary policy reads the word "stable" (Rui Finance)
Our reporter Wang Junling
"A prudent monetary policy must be precise and powerful" is a clear requirement put forward by the Central Economic Work Conference.
On December 29, the People's Bank of China launched a 7-day reverse repurchase operation of 205 billion yuan through interest rate bidding, with a winning bid rate of 2.00%.
So far, since December, the central bank has put in liquidity through open market operations for 21 days.
Analysts pointed out that with the optimization of epidemic prevention and control measures, the continuous recovery of economic activities, and the arrival of the peak season of bulk consumption at the end of the year, the demand for liquidity at the end of the year and the beginning of the year has increased.
Recently, the central bank has comprehensively used various monetary policy tools such as open market operations, medium-term lending facilities, and relending to increase liquidity, which is conducive to meeting market demand in a timely manner and promoting economic operation within a reasonable range.
Ensure reasonable and sufficient liquidity
160 billion yuan, 157 billion yuan, 205 billion yuan, 216 billion yuan... Over the past few days, the People's Bank of China has maintained a reasonable and sufficient liquidity in the banking system and stable liquidity at the end of the year through a series of intensive open market operations.
Zhao Xijun, co-director of the China Institute of Inclusive Finance at Renmin University of China, has noticed the recent changes in the central bank’s open market operations and rhythm.
"Since December, the central bank has gradually increased its liquidity allocation through open market operations. At the beginning of December, the total daily reverse repurchase was mostly 2 billion yuan, and it began to increase significantly after mid-December. On the 28th, the reverse repurchase amount Not only that, the period of reverse repurchase has also been extended from a simple 7-day period to a combination of 7-day period and 14-day period. Overall, prudence is still the main feature of monetary policy.” Zhao Xijun told this newspaper Reporter said.
Zhao Xijun said that the end of the year and the beginning of the year are not only intensive periods of settlement and remittance for enterprises and institutions, but also intensive periods for many households to purchase and update bulk consumer goods, and the demand for liquidity has gradually increased.
At this time, the central bank conducts timely, powerful, precise, and moderate open market operations, which can effectively meet market liquidity needs and form synergies with fiscal policies, employment policies, consumption policies, industrial policies, and social policies to jointly promote the smooth operation of the economy.
The People's Bank of China stated that it is necessary to implement a sound monetary policy accurately and forcefully, and comprehensively use various monetary policy tools such as open market operations to maintain reasonable and sufficient liquidity in the financial system.
Strengthen the implementation of prudent monetary policy, and keep the growth rate of broad money supply (M2) and social financing scale basically matching the nominal economic growth rate.
Continue to release the effectiveness of the reform of the loan market quotation rate (LPR), give full play to the role of the market-based adjustment mechanism of the deposit rate, and promote the stability and decline of corporate financing costs.
Focus on key areas
The People's Bank of China stated that it is necessary to increase financial support for domestic demand and supply systems.
Give full play to the functions of monetary and credit policy tools, and strongly support the recovery and expansion of consumption, key infrastructure, and the construction of major projects in line with the national development plan.
Give full play to the dual functions of monetary policy tools in both volume and structure, and guide financial institutions to increase support for areas such as "agriculture, rural areas and farmers", technological innovation, green development, and inclusive pensions.
At present, two batches of policy development financial instruments totaling more than 700 billion yuan have been released, supporting more than 2,700 projects; as of the end of November, the balance of inclusive small and micro enterprise loans was 23.2 trillion yuan, a year-on-year increase of 23.7%. More than half of new corporate loans were invested in private enterprises; new manufacturing loans in the first 10 months of this year were 4.4 trillion yuan, and medium and long-term loans to manufacturing industries at the end of October increased by 30% year-on-year; as of the end of the third quarter of this year, the green credit balance of 21 major banks Reached 19.8 trillion yuan, an increase of 28% from the beginning of the year... A series of data released by the China Banking and Insurance Regulatory Commission shows that the guarantee of credit fund demand in key areas is more powerful, and fund allocation is more precise.
The China Banking and Insurance Regulatory Commission stated that in the next step, it will guide commercial banking and insurance institutions to follow up with supporting funds to support and accelerate the construction of major projects to make up for shortcomings.
Guide banking institutions to expand medium and long-term loans to the manufacturing industry, and increase financial support for advanced manufacturing and strategic emerging industries such as new energy, artificial intelligence, biological manufacturing, and quantum computing.
At the same time, urge banking and insurance institutions to further improve green financial management systems and business processes, enhance green financial innovation and service capabilities, and support the development of key areas of carbon emission reduction.
Support the overall improvement of economic operation
The Central Economic Work Conference requires that next year we must adhere to the word stability, seek progress while maintaining stability, and continue to implement a proactive fiscal policy and a prudent monetary policy.
"A simple summary is that the total amount must be sufficient and the structure must be accurate." Liu Guoqiang, deputy governor of the People's Bank of China, said that the total amount must be sufficient, that is, the monetary policy should not be less than this year, and should be further strengthened if necessary.
It not only includes better meeting the needs of the real economy, but also maintains reasonable and sufficient liquidity in the financial market, and maintains reasonable flexibility in the price of funds without major fluctuations.
The structure must be accurate, that is, we must continue to increase support for key areas and weak links such as inclusive small and micro businesses, technological innovation, green development, and infrastructure, and continue to implement a series of structural monetary policies.
Dong Ximiao, chief researcher of China Merchants Union Finance, told our reporter that in the next stage, the monetary policy is expected to continue to work on two aspects of "precise" and "powerful" to further improve the accuracy and effectiveness of serving the real economy.
"From a total volume point of view, in the future, we can continue to guide LPR to a moderate downward trend, reduce the financing cost of the real economy and the burden of personal consumption credit, and stimulate effective financing needs; from a structural point of view, we must further increase the orientation of key areas and weak links" blood transfusion ', especially to strengthen precise drip irrigation for small and micro enterprises and individual industrial and commercial households." Dong Ximiao suggested.
"The key to the monetary policy's 'stable' strategy is to provide timely and effective financial support according to the needs of the real economy." Zhao Xijun said that at present and in the future, the growth rate of broad money supply and social financing scale should be kept at the same level as that of the nominal economy. The basic matching of the growth rate will remain an important feature of a prudent monetary policy.
(People's Daily Overseas Edition)