The People's Bank of China: Improve the reserve requirement system and conduct open market operations more flexibly and precisely.

The State Council Information Office will hold a press conference on the theme of "Starting the 15th Five-Year Plan" on Thursday, September 10, 2026.

According to Xinhua News Agency, Lu Lei, Vice Governor of the People's Bank of China, stated at a press conference that the "15th Five-Year Plan for Building a Financial Power" was recently officially released. To effectively implement these plans, the People's Bank of China formulated and issued the "15th Five-Year Plan for Reform and Development of the People's Bank of China," along with nine supporting action plans in related areas.

He stated that it is necessary to build a scientific and sound monetary policy system and a comprehensive macro-prudential management system, to effectively carry out counter-cyclical and cross-cyclical adjustments, and to ensure that the growth of social financing and money supply is in line with the expected targets for economic growth and the general price level.

"Therefore, we must improve the market-based interest rate formation, regulation, and transmission mechanism, give full play to the decisive role of the market in exchange rate formation, enhance the flexibility of the RMB exchange rate, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level ," he said.

Regarding monetary policy objectives, Lu Lei stated that the government will firmly maintain the stability of the currency value to promote economic growth and effectively support the high-quality development of the real economy. At the same time, it will gradually de-emphasize quantitative intermediate targets and place greater emphasis on leveraging the role of interest rate regulation.

Regarding tools, Lu Lei clarified that the government will continue to improve the base money issuance mechanism, refine the reserve requirement system, and conduct open market operations more flexibly and precisely ; continuously improve the market-based interest rate formation, regulation, and transmission mechanism, enhance the guiding role of policy interest rates, guide short-term money market interest rates to operate more smoothly around policy interest rates, and further smooth the transmission of "central bank policy interest rates - market benchmark interest rates - various financial market interest rates"; optimize the structural monetary policy tool system, improve the design and management of policy tools, and enhance the quality and efficiency of serving the real economy.

China has neither the need nor the intention to gain a competitive advantage in trade through currency devaluation.

At a press conference held by the State Council Information Office, Lu Lei, Vice Governor of the People's Bank of China, stated that China implements a managed floating exchange rate system, adheres to the decisive role of the market in exchange rate formation, and guards against the herding effect and self-reinforcing irrational expectations in the market. China has neither the need nor the intention to gain a competitive advantage in trade through currency devaluation.

Develop the offshore RMB market and enrich the supply of offshore RMB liquidity.

Lu Lei, Vice Governor of the People's Bank of China, stated that during the 15th Five-Year Plan period, efforts will be focused on promoting reform and development through opening up, and advancing high-level financial opening up. To this end, we will promote the internationalization of the RMB, strengthen cross-border connectivity of financial infrastructure, develop the offshore RMB market, and enrich the supply of offshore RMB liquidity.

During the 15th Five-Year Plan period, the financial statistics, payment, treasury, and cash service systems will be improved.

Lu Lei stated that during the 15th Five-Year Plan period, the People's Bank of China will comprehensively strengthen the foundation for fulfilling its duties, continuously optimize financial infrastructure and the central bank service system, improve the quality and efficiency of central bank financial services, and improve the financial statistics, payment, treasury, and cash service systems.

The central bank will firmly maintain the stability of the currency value while gradually de-emphasizing quantitative intermediate targets.

Lu Lei stated that during the 15th Five-Year Plan period, the People's Bank of China (PBOC) will further improve and optimize the framework of a modern monetary policy system with Chinese characteristics. The PBOC will firmly maintain currency stability to promote economic growth and effectively support the high-quality development of the real economy. At the same time, it will gradually de-emphasize quantitative intermediate targets and place greater emphasis on leveraging the role of interest rate-based regulatory tools.

Improve the reserve requirement system and conduct open market operations more flexibly and precisely.

Lu Lei stated that during the 15th Five-Year Plan period, the People's Bank of China will continue to improve the base money issuance mechanism, refine the reserve requirement system, conduct open market operations more flexibly and precisely, continuously improve the market-based interest rate formation, regulation, and transmission mechanism, enhance the guiding role of policy interest rates, and guide short-term money market interest rates to operate more smoothly around policy interest rates.

The government will regularly issue treasury bonds and central bank bills to enrich its high-grade RMB asset pool.

Lu Lei stated that during the 15th Five-Year Plan period, the People's Bank of China will continue to support the healthy development of the offshore RMB market, optimize the layout of RMB clearing banks, improve the multi-tiered and cross-term liquidity supply mechanism, maintain sufficient and stable RMB liquidity in the offshore market, issue treasury bonds and central bank bills on a regular basis, and enrich the high-grade RMB asset pool.

The following is a transcript of the press conference:

Lu Lei, Vice Governor of the People's Bank of China:

Good afternoon, friends from the media. Thank you very much for your continued attention and coverage of the financial sector and the work of the People's Bank of China. During the 14th Five-Year Plan period, under the strong leadership of the CPC Central Committee, the financial industry has achieved a series of significant accomplishments in reform and development. The Party's leadership and Party building within the financial system have been comprehensively strengthened, the quality and efficiency of serving the real economy have been continuously enhanced, reform and opening up have been steadily advanced, risks in key areas have been properly addressed, regulatory shortcomings have been rapidly addressed, financial opening up has been continuously promoted, and the ability to serve the overall situation has been significantly improved.

During the 15th Five-Year Plan period, my country's economic and financial development environment faced profound and complex changes. To fully implement the spirit of the 20th National Congress of the Communist Party of China and its subsequent plenary sessions, and to thoroughly implement the decisions and plans of the Central Financial Work Conference, in accordance with the requirements of the 15th Five-Year Plan Outline, and under the unified deployment of the Central Financial Stability and Development Committee, the Central Financial Affairs Office, in conjunction with various financial institutions, officially released the "15th Five-Year Plan for Building a Financial Power." This represents the overall strategy and specific plan for financial work during the 15th Five-Year Plan period.

The plan adheres to the general principle of seeking progress while maintaining stability, and follows the main line of "preventing risks, strengthening supervision, and promoting high-quality development." It emphasizes achieving high-quality development of the financial industry itself while serving the high-quality development of the economy and society, based on effectively preventing and resolving financial risks and strengthening financial supervision.

The overall goal is to establish the general framework of a modern financial system with Chinese characteristics by 2030, with effective and coordinated financial regulation policies, a rationally optimized financial system structure, rigorous and robust financial supervision, precise and efficient financial risk prevention and control, continuously improving the quality and efficiency of financial support for economic and social development, a complete and sound financial legal system, steadily expanding high-level financial opening-up, and continuously enhancing the international influence and competitiveness of the financial industry. By 2035, a highly adaptable, competitive, and inclusive modern financial system with Chinese characteristics will be basically established, laying a solid foundation for building a strong financial nation.

To accelerate the construction of a modern financial system with Chinese characteristics, the "Plan" systematically clarifies the key tasks for building a strong financial nation during the "15th Five-Year Plan" period, including improving the financial macro-control system, comprehensively strengthening financial supervision, effectively preventing and resolving financial risks, actively and effectively serving the real economy, promoting high-quality financial development, and expanding high-level financial opening-up.

To effectively implement the "15th Five-Year Plan" Outline and the "15th Five-Year Plan for Building a Financial Power," the People's Bank of China recently formulated and issued its "15th Five-Year Plan for Reform and Development," along with nine supporting action plans in related fields. I will briefly introduce the specific details to you.

First, we must focus on our objectives and improve our framework. Monetary and financial stability remain central objectives of the central bank's work, requiring an efficient and stable framework—a dual-pillar framework comprised of a monetary policy system and a macro-prudential management system. This involves building a scientifically sound monetary policy system and a comprehensive macro-prudential management system. We must effectively implement counter-cyclical and cross-cyclical adjustments, ensuring that the growth of social financing and money supply matches the expected targets for economic growth and the general price level. We must improve the market-based interest rate formation, regulation, and transmission mechanisms. We must leverage the decisive role of the market in exchange rate formation, enhance the flexibility of the RMB exchange rate, and maintain its basic stability at a reasonable and balanced level. We must enhance the level of monetary policy communication and expectation management. We must expand the central bank's macro-prudential and financial stability functions, broaden the coverage of macro-prudential management, enrich macro-prudential management tools, strengthen the macro-prudential monitoring and evaluation mechanism, enhance the construction of a financial stability guarantee system, and effectively mitigate financial risks in key areas.

Second, focusing on the fundamental purpose of serving the real economy, we will improve the financial policy system, provide precise and effective support for major strategies, key areas, and weak links, promote the transformation of old and new growth drivers, and enhance the quality and efficiency of financial services to the real economy. We will focus on five key areas of financial work to improve the adaptability of financial products and services. We will build a science and technology finance system adapted to technological innovation, develop a high-quality "technology board" for the bond market, improve the quality and efficiency of financial support for green development and low-carbon transformation, continuously improve the inclusive finance system, improve the pension finance system, accelerate the development of digital finance, and strengthen financial support for boosting and expanding consumption. As the macroeconomic control department, the central bank, focusing on the goals of economic growth and price stability, must continuously improve its policy system to serve the transformation of the real economy.

Third, we will focus on improving the financial structure, continuously building an open, inclusive, dynamic, and resilient modern financial market, and promoting the optimization of the financing structure. We will improve the multi-category, multi-tiered financial market system, further enrich financial market formats, enhance the inclusiveness of the financial market, increase the proportion of direct financing, and better leverage the role of the financial market in promoting the development of new productive forces. We will continue to deepen market-oriented reforms and further enhance the price discovery and resource allocation functions of the financial market. We will strengthen the institutional construction of the financial market, improve the macro-prudential management framework and regulatory system of the financial market, and maintain the stable and healthy operation of the financial market.

Fourth, we will focus on promoting reform and development through opening up, and advance high-level opening up of the financial sector. We will promote the internationalization of the RMB and expand its role in international trade and investment. We will deepen the two-way opening up of the financial market and strengthen cross-border connectivity of financial infrastructure. We will develop the offshore RMB market and enrich the supply of offshore RMB liquidity. We will improve the multi-tiered and broad-coverage RMB cross-border payment system. We will accelerate the construction of Shanghai as an international financial center, consolidate and enhance Hong Kong's status as an international financial center, and increase the international attractiveness and influence of the financial centers. We will actively participate in and promote global financial governance reform. We will coordinate openness and security, and safeguard financial stability.

Fifth, we will comprehensively strengthen the foundation for the central bank's performance of its duties and continuously optimize financial infrastructure and the central bank's service system. We will strengthen the top-level design of financial infrastructure, promote the formation of a rationally structured, effectively governed, advanced, reliable, and resilient financial infrastructure system, and enhance the risk management capabilities, governance level, and technological support capabilities of financial infrastructure. We will improve the quality and efficiency of central bank financial services, improve the financial statistics, payment, treasury, and cash service systems, steadily develop the digital RMB, promote the high-quality development of the credit reporting industry, and strengthen anti-money laundering supervision. We will comprehensively advance the construction of a law-based central bank and a digital central bank. We will optimize the central bank's own services and infrastructure to solidify the foundation for the central bank's work in building a strong financial nation.

During the 15th Five-Year Plan period, the People's Bank of China will make every effort to promote the implementation of the central government's decisions and plans and the key tasks and measures of the plans at all levels, and accelerate the construction of a strong financial nation and serve the high-quality development of the economy.

That concludes my brief introduction. I welcome any questions from journalists. Thank you!

The following is a Q&A session:

CCTV reporter:

How will the People's Bank of China continue to focus on the "five major tasks" in finance during the 15th Five-Year Plan period to serve the high-quality development of the real economy? Thank you.

Lu Lei:

Thank you for your question. This work has been a key task that the People's Bank of China has been vigorously promoting in recent years. The reason for this is that the "five major areas" of finance have distinct structural characteristics of the economy and finance, with a significant portion concerning new economic growth points and serving as an important lever for achieving high-quality development. Therefore, our relevant policies focus on effectively implementing these "five major areas," strengthening overall coordination and policy implementation in areas such as technology, green development, inclusive finance, elderly care, and digitalization, and increasing financial support for major strategies, key areas, and weak links. Specific approaches mainly involve three aspects: First, guiding the financial market to optimize financial supply through policies, leveraging the incentive role of structural monetary policy, and lowering the interest rates of structural monetary policy tools. Second, enriching the coverage of policy tools, primarily by increasing the quotas for relending for technological innovation and technological upgrading, and relending for agriculture and small businesses, and establishing a separate relending facility for private enterprises. Merging and establishing a risk-sharing tool for technological innovation and private enterprise bonds, and expanding the support areas for relending for service consumption and elderly care, as well as carbon emission reduction support tools. Third, strengthening multi-faceted policy coordination. Enhancing the coordination of fiscal and monetary policies, and utilizing fiscal subsidies, guarantees, and risk compensation to amplify the effects of financial support. As of the end of June this year, the outstanding balance of structural monetary policy tools supporting the "five major areas" of financial services was 4.6 trillion yuan. Loans related to these five areas increased by 10.9% year-on-year, with loan growth rates in areas such as technology, green development, inclusive finance, elderly care, and digital technology all exceeding the average growth rate of all loans. Looking ahead to the 15th Five-Year Plan period, the People's Bank of China will further improve the institutional framework for the "five major areas" of financial services, optimize policy tools and the structure of funding supply, and strengthen inter-departmental coordination and system platform support to enhance the quality and efficiency of financial services to the real economy. The key considerations are as follows:

In terms of science and technology finance, we are committed to building a science and technology finance system that is compatible with technological innovation. We will make good use of structural monetary policy tools, build a high-quality "science and technology board" in the bond market, improve supporting mechanisms such as information sharing, and cultivate a financial service system that covers the entire chain of technological innovation and the entire life cycle of technology-based enterprises.

In terms of green initiatives, the focus is on enhancing the service capabilities of financial institutions to support green development and low-carbon transformation.

In terms of inclusive finance, we should accelerate the construction of a cost-effective and commercially sustainable development model, especially by improving financing support policies for private and micro and small enterprises, giving full play to the role of finance in promoting the modernization of agriculture and rural areas, and continuing to implement policies on guaranteed loans for entrepreneurship and student loans.

In terms of pension finance, we will focus on increasing the supply of pension finance, improving pension financial services, and establishing a sound pension finance system to address population aging.

In terms of digital finance, we will accelerate the digital and intelligent transformation of finance, improve the financial service capabilities of the digital economy, and give full play to the supporting role of finance in the deep integration of the real economy and the digital economy.

In terms of policy coordination, we will strengthen the coordination of fiscal and financial policies to promote the expansion of consumer demand and high-quality supply, and meet the diversified and personalized consumer financing needs of residents.

In addition, financial policies are formulated and implemented in accordance with national regional coordinated development strategies to promote coordinated regional economic development.

That's all for my brief introduction, thank you!

This article is sourced from China.com.

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