nfra. securities, funds and insurance companies swap facility ( sfisf ) are now open to financial institutions for application. the policies related to special central bank lending for shares buyback and holdings increase have been officially released today for implementation. 1 / 6 bis - central bankers'speeches since it was announced and implemented, the policy package has received positive feedback both at home and abroad. it has vigorously boosted social confidence and played an effective role in promoting stable economic and financial performance. we have taken three main factors into consideration while formulating these policies. first, given the current economic performance, we need to implement strong macro aggregate policies. major problems in the current economic operation, as reflected at the macro level, are insufficient effective demand, weak social expectations and low prices. a common market view is that we need to launch strong macro policies. according to the arrangements of the cpc central committee, the pboc has conducted in - depth researches and prepared policy plans in advance. against this backdrop, the cpc central committee promptly made the decision to launch a package of incremental policies, which reflect its determination to secure the economy, stabilize expectations, boost consumption and benefit people's livelihood. the market responded to the initiative positively. second, the economy still faces some prominent challenges, which are mainly related to the real estate market and the capital market. drawing on international experience and china's practices in the past, we need to unveil targeted policies in response. in terms of the real estate market, the pboc, based on its mandate, has improved four real estate finance - related policies, supporting risk defusing and sound development of the real estate market from a macro - prudential perspective. in terms of the capital market, the pboc, together with the csrc, has developed two instruments to facilitate the stable development of the capital market. the two instruments were designed completely based on market principles, and internationally there had been successful practices. regarding the sfisf, the central bank does not provide fund support for the market directly, so it does not expand the central bank's money supply and base money. the central bank lending for shares buyback and holdings increase is targeted. the credit funds must not enter the stock market in violation of financial regulation. this remains a red line. the two instruments showcase the efforts of the pboc to expand and explore its mandate of maintaining financial stability. we will keep on cooperating with the csrc to gradually improve the

pan gongsheng : strike the right balance and pursue high - quality development of the chinese economy keynote speech by mr pan gongsheng, governor of the people's bank of china, at the annual conference of the financial street forum 2024, beijing, 18 october 2024. * * * distinguished party secretary yin li, mayor yin yong, mr. wang jiang, mr. li yunze, mr. wu qing, mr. fu hua, mr. zhu hexin, and dear guests, good morning! it is a great pleasure to attend the financial street forum. i would like to take this opportunity to exchange views with you on three issues. i. progress in implementing a package of incremental monetary policies according to arrangements of the cpc central committee, financial regulators announced a package of policies to support stable economic growth on september 24. the move attracted great attention and received extensive support. the day before yesterday, the pboc, the national financial regulatory administration ( nfra ), and china securities regulatory commission ( csrc ) organized a meeting with major commercial banks, securities firms, and fund companies to make arrangements for prompt implementation of the package of policies. here i would like to share with you our progress in implementing relevant policies. in terms of the required reserve ratio ( rrr ) and interest rate cut, on september 27, the rrr was cut by 0. 5 percentage points, the 7 - day reverse repo rate was cut by 0. 2 percentage points, and the medium - term lending facility ( mlf ) rate was cut by 0. 3 percentage points from 2. 3 percent to 2 percent. we might further cut the rrr by 0. 250. 5 percentage points at proper time, depending on the market liquidity before the yearend. this morning, the commercial banks have announced to lower the deposit rates, and the loan prime rate ( lpr ) to be released on october 21 is also expected to drop by 0. 2 - 0. 25 percentage points. the four policies related to real estate finance have all been rolled out. specifically, the adjustment of rates on existing housing loans is a policy to benefit people's livelihood unveiled at the decision of the cpc central committee. it will benefit 50 million households, whose interest expenses will be reduced by about rmb150 billion each year. as for the two financial instruments to support stable development of the capital market, the pboc has established a special working group together with the csrc and