At the 2023 Financial Street Forum Annual Meeting, Pan Gongsheng, Governor of the People's Bank of China and Director of the State Administration of Foreign Exchange, said that overall, the debt level of the Chinese government is at the lower middle level in the world. Since the beginning of this year, the financial sector, together with relevant departments, has taken a number of measures to actively support local governments in resolving debt risks in a prudent manner. The first is to strictly enforce financial and economic discipline, and encourage local governments and financing platforms to raise resources to repay debts by revitalizing or selling assets. Second, for areas with relatively heavy debt burdens, new government investment projects should be strictly controlled. The third is to guide financial institutions to implement classified policies to resolve the risk of existing debts, strictly control incremental debts, and establish a normalized financial debt monitoring mechanism for financing platforms through extensions, repayment of old loans, and replacement. If necessary, the People's Bank of China will also provide emergency liquidity support to regions with relatively heavy debt burdens. Fourth, support local governments to gradually divest the government financing function of financing platforms through mergers and acquisitions, reorganization, asset injection, etc., and transform into market-oriented enterprises that do not rely on government credit and are financially independent and sustainable.

Pan Gongsheng: We are confident that we will maintain the basic stability of the RMB exchange rate at a reasonable and balanced level

Pan Gongsheng said that thanks to the continuous recovery of the domestic economy, the RMB is basically stable against a basket of currencies and appreciates against non-US dollar currencies. We insist that the market plays a decisive role in the formation of exchange rates. At the same time, we will resolutely correct the pro-cyclical behavior of the market, resolutely deal with the behavior that disrupts the market order, resolutely prevent the risk of exchange rate overshoot, and prevent the formation of unilateral consensus expectations and self-reinforcement. We have the confidence, ability and conditions to maintain the stable operation of the foreign exchange market and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.

Pan Gongsheng: In the next stage, monetary policy will pay more attention to cross-cyclical and counter-cyclical adjustment

Pan Gongsheng, Governor of the People's Bank of China and Director of the State Administration of Foreign Exchange, said at the 2023 Financial Street Forum Annual Meeting that he would always maintain the soundness of monetary policy and support the stable growth of the real economy. At present, the total amount of money and credit has maintained a reasonable growth, the credit structure has been continuously optimized, and the interest rate on corporate loans has been at a low level, providing strong and effective support for the recovery and development of the economy. In the next stage, monetary policy will pay more attention to cross-cyclical and counter-cyclical adjustments, balance the relationship between short-term and long-term, steady growth and risk prevention, and internal equilibrium and external equilibrium, so as to create a good monetary and financial environment for stabilizing prices, promoting economic growth, expanding employment, and maintaining the balance of payments.

Pan Gongsheng: A small number of provinces with a relatively high concentration of high-risk institutions are formulating and implementing a plan for the reform of small and medium-sized banks

Pan Gongsheng, Governor of the People's Bank of China and Director of the State Administration of Foreign Exchange, said at the 2023 Financial Street Forum Annual Conference that China's high-risk financial institutions account for a very small proportion of the financial system in terms of both number and asset scale. After several years of reform, the number of high-risk small and medium-sized banks has dropped by half from the peak. A small number of provinces with relatively concentrated high-risk institutions are formulating and implementing a reform plan for small and medium-sized banks to replenish capital through multiple channels. The People's Bank of China will work with relevant departments to improve the financial risk monitoring, assessment, prevention and control system, and improve the early correction mechanism for financial risks with hard constraints. (CCTV News Client)