AFF 2025 | Central govt to focus on four key areas to support construction of HK as international financial center: Pan Gongsheng
China will implement more proactive policies to further improve economic governance, Pan Gongsheng, Governor of the People's Bank of China, said at the 18th Asian Financial Forum today (Jan. 13).
Pan mentioned that, specifically, first, they will strengthen the operational mechanism of macroeconomic policies to ensure a more proactive implementation of economic growth. In terms of fiscal policy, they will increase the level of the fiscal deficit, boost fiscal spending, and adjust and optimize the structure of fiscal expenditures. Monetary policy, also, will maintain a liquidity-abundant and loose social financing environment.
Second, they will actively promote the transformation of China's economic growth model to enhance the quality of economic growth, with a focus on boosting consumption as a key aspect of economic work.
Third, in response to certain risks in economic operations, the Chinese government has taken a series of measures to effectively mitigate these risks, with overall local government debt risks in a converging state. In the real estate market, after nearly 30 years of development, the Chinese real estate market is undergoing significant changes. Restrictive policies in major and medium-sized cities have been lifted, and policies related to real estate finance and relevant taxes have been optimized and adjusted, leading to overall market improvement.
Furthermore, Pan emphasized that China's external economic system has been effectively improved, and they will adhere to the path of reform and opening up, advocate for free trade and fair competition, and accelerate the construction of new development trends. He also expressed confidence, conditions, and capabilities in maintaining the stable operation of the foreign exchange market, emphasizing the decisive role of the market in the currency situation and effectively utilizing the exchange rate as a macroeconomic and international balance of payments stabilizer.
Regarding deepening financial cooperation between mainland China and Hong Kong, Pan pointed out that Hong Kong is a major international financial center with a highly open business environment, developed financial market system, and comprehensive financial infrastructure. In recent years, the People's Bank of China, along with relevant departments, has promoted and implemented a series of pragmatic measures to support the development of Hong Kong's financial market. Moving forward, they will focus on four key directions to fully support the construction of Hong Kong as an international financial center: supporting the development of Hong Kong's capital market, deepening financial market connectivity between the two regions; expanding and strengthening Hong Kong's RMB business; enhancing the functions of Hong Kong as an international asset management center and wealth management center; and resolutely safeguarding Hong Kong's financial stability and security.
Pan also mentioned policy measures to improve the construction of the offshore RMB market, optimizing financial market connectivity, and enhancing the convenience of electronic payment decisions. He believes that thanks to Hong Kong's unique advantages and the city's efforts, the potential of Hong Kong as an international financial center will continue to consolidate and enhance.
Related News:
IMF recognizes HK's position as international financial center and fiscal consolidation path
Comment