the two - pillar regulatory framework of monetary policy and macro prudential policy has been established. after the outbreak of the global financial crisis in 2008, the international community recognized that macro imprudence was a crucial cause of the crisis. the pbc spearheaded in the innovative exploration of counter - cyclical macro prudential management. in the second half of 2009, as rmb loans grew rapidly, it proposed to develop new counter - cyclical measures under the macro prudential policy framework. in 2010, the pbc explored the practice of macro prudential management by introducing dynamic adjustments of differentiated reserve requirements, associating credit expansion with capital adequacy level required by the macro prudential management. at end - 2010, the central economic work conference explicitly instructed to use well of the macro prudential tool. after that, the pbc continuously improved macro prudential policies, upgraded the dynamic adjustment mechanism for differentiated reserve requirements into the macro prudential assessment ( mpa ) system, and took gradual steps to include more financial activities, asset expanding behaviors, and all - system cross - border financing in its macro prudential management. in 2017, “ improving the framework of regulation underpinned by monetary policy and macro - prudential policy ” was formally written in the report of the 19th cpc national congress. battle for forestalling and defusing major risks has progressed. in the report to the 19th cpc national congress, general secretary xi jinping noted that we must fight three critical battles and the first of which is to take tough steps to forestall and defuse major risks. the pbc has proactively fulfilled the responsibilities of the general office of the financial stability and development committee under the state council, taken the lead in developing the three - year action plan to forestall and defuse major risks, launched new asset management regulations and supporting policies, strengthened regulation of financial holding groups, improved regulatory regimes for systematically important financial institutions ( sifis ) and financial infrastructures, and shored up weak links in the system. measures have been taken to promote structural deleveraging in an active and prudent manner, properly manage money supply, tighten asset and debt constraints for state - owned enterprises, rigorously implement differentiated housing credit policies, and strictly curb the excessive growth of household debt as well as local governments ’ hidden debt and leverage ratio. meanwhile, the pbc has also rectified various financial chaos in a well - regulated way, resol

pan gongsheng : keynote speech - hong kong monetary authoritybank for international settlements high - level conference keynote speech by mr pan gongsheng, deputy governor of the people's bank of china, at the hkma - bis high - level conference, hong kong, 28 november 2023. * * * thank you norman for the kind introduction. general manager agustan carstens, chief executive eddie yue, ladies and gentlemen, good afternoon! it gives me great pleasure to attend the hkma - bis high - level conference, and celebrate hkma's 30th anniversary and bis asian office's 25th anniversary with you. i would like to take this opportunity to talk about how we see the chinese economy, our monetary policy response, where we are in financial sector opening, pboc's participation in international financial governance, and last but not least, the special role of hong kong as an international financial center. first, on how we see the chinese economy. china's economy has, on the whole, continued to gain momentum in recovery. gdp grew by 5. 2 % in the first three quarters, and is expected to achieve the 5 % growth target for the whole year. the imf recently raised its 2023 growth forecast for china to 5. 4 %, which is still relatively high among the world's major economies. we could break down the gdp and take a closer look. for consumption, its contribution to gdp has been on the rise and the service sector is doing well. in october, retail sales enjoyed a good growth of 7. 6 % year - on - year. for investment, in the first ten months, manufacturing investment increased by 6. 2 % from a year ago. and if real estate investment were excluded, private investment would actually be growing by 9. 1 % year - on - year. investment in high - tech has been growing fast at a rate of 11 %. as for foreign trade, the value of imports and exports denominated in rmb stopped the decline and went up by about 1 % year - on - year in october. quantity wise, the volume of export and import has actually maintained a growth at around 10 %. over the past year or so, many central banks around the world have been troubled by the problem of persistent high inflation. but for china, the problem is somewhat different. cpi is gradually bottoming out in china. it returned to positive growth in august and september, but dropped a little bit in october