SHANGHAI — China's top banking and insurance regulator on July 18 pledged sustained efforts to spur faster economic recovery, and ensured stable employment and development of enterprises to cushion the COVID-19 impact.

Many enterprises, though hit hard by the COVID-19 epidemic, have promising business prospects and sound credit records, Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission (CBIRC), said at the Lujiazui Forum in Shanghai via video link.

The banks and the government should actively cooperate to forge rescue plans for the firms, he said, adding that China will strengthen the role of policy-based finance in countercyclical adjustments. "This year, the loans arranged by policy banks will increase by nearly 1 trillion yuan (about $141 billion) over last year, with a larger scale of bonds issuance and additional funds."

The CBIRC is planning to roll out measures to support the development of the capital market, including adding new institutional investors, increasing the issuance of equity asset management products, encouraging new asset management subsidiaries to invest more in securities, and supporting insurance companies in expanding investment in the capital market, Guo said.

The country will not engage in a deluge of strong stimulus policies, let alone introducing monetization of the fiscal deficits or negative interest rates, he added, noting that China cherishes the use of normal monetary and fiscal policies.

China will unwaveringly deepen reform and expand opening-up in the financial sector, strive to create a market-oriented, law-based and internationalized business environment, and encourage wider cooperation between Chinese and foreign institutions so as to deepen foreign participation in the Chinese market, Guo said.