The third meeting of the Financial Stability and Development Committee under the State Council, presided over by Vice-Premier Liu He on Sept 7, analyzed the current financial situations, and studied the next phase of key tasks for the financial sector.
The current macro-economic situation remains stable, demonstrated by steady economic and financial development, continued supply-side structural reform, regular employment and better resilience of micro entities, according to the meeting.
The financial sector has implemented prudent and neutral monetary policies, supplemented by fine-tuning as needed, which kept market liquidity reasonable and the market for credit, bonds and stocks stable, and ensured that the RMB exchange rate has kept to a reasonable range, financial risks have been dissolved, and risk awareness and market disciplines have been enhanced.
Insisting on the idea of seeking progress while maintaining stability, the current tasks for the financial sector should focus on addressing key issues, according to the meeting.
The panel announced that China should continue to implement prudent and neutral monetary policies, fine-tuning it after taking full consideration of any changes in the financial situation and external environment.
Efforts should be made to strengthen inter-department coordination, especially among the financial, fiscal and development and reform departments, to help make policy support more precise and better serve the real economy.
The meeting also stressed addressing all kinds of financial risks, both in containing existing risks and unforeseen events.
Also, according to the meeting, China should promote reform and opening-up in the financial sector, ensuring that existing measures are in place and new measures studied, and protect property rights and intellectual property rights, to create a level playing field for enterprises.
It also urged efforts to improve incentive mechanisms and create an environment in which taking responsibility is encouraged and failure is tolerated.
