Vice premier Liu calls for flexible monetary policy
CHINA’S Vice Premier Liu He said yesterday the country’s prudent monetary policy should be more flexible, and it should strengthen counter-cyclical adjustments in economic management.
Liu’s prepared speech was delivered at the 12th Lujiazui Forum 2020 in Shanghai by Yi Huiman, the head of China’s securities regulator.
Liu said one key task of the financial system is to make the prudent monetary policy more flexible and appropriate, strengthening counter-cyclical regulation, adhering to an appropriate aggregate policy, maintaining reasonable and ample liquidity, promoting a virtuous circle between the financial sector and the real economy, and giving full support to the work of ensuring stability on six fronts and security in six areas.
He listed five major tasks that the financial system should carry out.
The country’s financial system will also make efforts to better serve the real economy and promote economic transformation and upgrading. Supply-side structural reform should be deepened, and efforts should be made to break through the blocking points of currency transmission, innovate financial products, optimize financial structure, and increase the proportion of small and micro enterprises getting corporate loans, credit loans and manufacturing loans.
Meanwhile, the country will accelerate the development of the capital market, optimizing the systems of information disclosure, issuance and delisting, and enhancing the convenience of transactions, market liquidity and vibrancy.
The supervision of market intermediaries will be strengthened, and authorities will substantially intensify efforts to crack down on financial frauds and other illegal acts.
Also, the implementation of the securities class action mechanism will be accelerated to better protect the interests of investors.
Liu said that in the face of the COVID-19 outbreak, the country has made great achievements in coordinating the prevention and control of the epidemic and in resuming work and production, and marginal improvements have been made in various economic indicators.
In May, the value-added industrial output of enterprises above designated scale increased by 4.4 percent year on year, with manufacturing industry up 5.2 percent. Fixed asset investment rose 5.87 percent month on month, some consumer and retail sales indicators showed positive changes, and both the automobile and property markets are picking up.
“We are still facing great downward pressure on the economy, but the situation is gradually changing for the better. A new pattern of double-cycle development, with domestic circulation as the main one and mutual promotion at the international and domestic levels, is taking shape,” Liu said.
“The once-in-a-blue-moon epidemic has made us aware that greater attention should be paid to seeing human life and health as the center in promoting national economic and social development and scientific and technological innovation.
“We should also attach importance to the harmony between nature and humanity, the global cooperation and protection of the integrity and stability of industrial chains, as well as the long-term sustainable development of economy and society," he said.
On his part, Yi Huiman, chairman of the China Securities Regulatory Commission, said global trade, investment and consumption all fell significantly, supply chains and industrial chains also encountered obstructions, while both sides of supply and demand suffered setbacks.
In the face of such difficulties, Yi said, the financial sector must take the initiative to better perform its important functions of promoting the global allocation of factor resources, facilitating cross-border investment and financing activities, and supporting scientific and technological innovation in industries. This year’s forum will last for two days.