Pan Gongsheng Highlights Supportive Monetary Policies and Personal Credit Initiatives

Strengthening China's Monetary Policies

The People’s Bank of China, under Governor Pan Gongsheng, has emphasized a commitment to a supportive monetary stance in light of recent credit data that signals growth in money supply. As highlighted in a report to the National People’s Congress Standing Committee, the bank aims to enhance both the intensity and accuracy of its monetary policies. Governor Pan's statements come at a pivotal time as international investor sentiment fluctuates, particularly following the recent US elections.

Key Monetary Strategies

• Maintaining Ample Liquidity: Pan noted the importance of keeping liquidity at reasonable levels while reducing financing costs for households and businesses.
• Preventing Exchange Rate Overshooting: Ensuring stability in the yuan exchange rate is crucial amidst rising pressures from global markets.
• Optimizing Credit Structures: The PBOC plans to guide financial institutions towards better credit distribution, particularly towards technology sectors.

Recent Economic Indicators

The M1 money supply has recently contracted 6.1% year-on-year, while the broader M2 increased by 7.5%, illustrating shifts in economic health influenced by property sales and government trade-in programmes.

In a significant development, the PBOC has licensed Ant Group's Qiantang Credit Rating as a new player in the personal credit market, indicating a broader shift in China's financial landscape.