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E-mail China.org.cn, February 7, 2024
CCTV:
The CPC Central Committee has issued a clarion call to move faster to build China into a financially strong country. What considerations does the PBC have in terms of implementation? Thank you.
Pan Gongsheng:
Thank you. I will take this question. Since the 18th CPC National Congress, China's reform of the financial system has made significant progress. The construction of a modern financial regulation system, financial supervision system, financial institution system, financial product and service system, and financial infrastructure system continues to advance. The role of finance in contributing to the real economy and preventing and controlling risks has been significantly enhanced. With China's rise in political and economic status, the international influence of the PBC and the level of RMB internationalization have greatly improved. These developments have laid a good foundation for boosting China's strength in finance.
Currently, China's banking industry ranks first globally in terms of asset size. Its bond market ranks second in the world, and its foreign exchange reserves have ranked first worldwide for 19 consecutive years. The development of digital finance, green finance, and inclusive finance is at the forefront of the world. The RMB holds the third-largest overall share within the International Monetary Fund's Special Drawing Rights currency basket, and over 80 countries and economies have included the RMB as a reserve currency.
Building China into a financial powerhouse is a long-term goal and a systematic project. It requires adhering to the basic principles of marketization, rule of law, and internationalization, and it requires long-term efforts and perseverance. We must continue the reform aimed at improving the socialist market economy and continuously enhance and improve financial market's role in allocating resources. We need to continuously improve the rule of law in finance and enhance the transparency, stability, and predictability of financial systems and policies. We should coordinate deep-level financial reform and high-standard financial opening-up, continuously promote the opening up of the financial service industry and financial market to the outside world, enhance the level of trade and investment facilitation, and strengthen the building of financial security capabilities and make sure they are compatible with the level of openness.
General Secretary Xi Jinping has pointed out that a financial powerhouse should have six key core financial elements and emphasized the need to have a strong currency and a strong central bank. Currency is the foundation of the financial system as well as an overall reflection of a nation's comprehensive strength, international competitiveness, and macroeconomic governance capabilities. A strong currency can better fulfill the functions of measure of value, medium of exchange, methods of payment, and store of value. It enhances the confidence of currency holders, meets the needs of opening up and cross-border investment and financing, and provides a favorable monetary and financial environment for the healthy development of the national economy.
We will focus more on establishing a two-pillar regulation framework comprising of sound monetary policy and macro-prudential policy in order to achieve the dual objectives of currency stability and financial stability. We will accelerate the construction of a modern central bank system, with responsibilities centered around monetary policy, prevention and control of systemic financial risks, financial stability and national financial security, international financial governance and cooperation, financial markets, financial infrastructure construction, and financial management and services. We will continue to promote supply-side structural reforms in the financial sector, optimize the system of financial institutions and the structure and distribution of the financial market, and accelerate the development of a modern financial system with Chinese characteristics.
Meanwhile, the People's Bank also undertakes important responsibilities in key tasks such as building strong financial institutions, strong international financial centers, robust financial supervision, and high-caliber teams of financial professionals. We will adhere to the centralized and unified leadership of the CPC Central Committee in financial work, deeply understand and grasp the political and people-oriented nature of financial work, firmly follow the path of developing finance with Chinese characteristics and effectively carry out various tasks. We will continue to promote high-quality development of the financial sector and vigorously build China into a financial powerhouse. Thank you.
