Zhou Xiaochuan Stressed The Need To Vigorously Promote Financial Reform

On June 11th, the central bank issued the annual report of the people's Bank of China 2013 today. In his speech at the annual report, Zhou Xiaochuan reviewed the main work of the people's Bank of China in 2013, and stressed that in 2014, he will adhere to the general keynote of the steady progress of the work, reform and innovate the central bank's work, continue to implement a prudent monetary policy, constantly improve the ways and means of regulation, enhance the forward-looking, targeted and synergistic nature of the regulation and control, vigorously promote financial reform, earnestly safeguard financial stability, and improve the level of financial services and management.

　　 The following is the speech by Zhou Xiaochuan:

Address by governor

The year 2013 marks the beginning of the comprehensive implementation of the spirit of the eighteen major meetings of the party, and is also the key year for accelerating the transformation of the mode of economic development. Facing the complex and severe economic and financial environment at home and abroad, the people's Bank of China, under the leadership of the Party Central Committee and the State Council, has strengthened and improved macroeconomic regulation and control, accelerated the reform and opening up of the financial sector, and made efforts to maintain financial stability, creating a good monetary and financial environment for the sustained and healthy development of the national economy.

　　 Strengthening and improving macroeconomic regulation and control

In 2013, macroeconomic regulation and control faced major challenges, mainly due to the downward pressure on domestic economy in the first half of the year, the increase in business difficulties and the fluctuation of the money market. Facing the complex situation, the PBC adheres to the regulation and control orientation of "total volume stability and structural optimization", continues to implement prudent monetary policy, strengthens macro Prudential Management, innovates regulation ideas and methods, and maintains firm and precise efforts. It neither relaxes nor tightens monetary policy, and appropriately pre fines fine tuning. We should carry out the open market operation flexibly, create short-term liquidity adjustment tools and convenient loan facilities, maintain a reasonable and moderate liquidity in the banking system, maintain the overall stability of the money market, guide financial institutions to revitalize the stock and make good use of the increment so as to maintain a moderate and moderate growth in the scale of money and credit and social financing. In the whole year, the broad money supply M2 increased by 13.6% compared with the same period last year, the new RMB loan was 8 trillion and 890 billion yuan, and the scale of social financing was 17 trillion and 290 billion yuan. In the first few months, the momentum of the growth of the scale of money and credit and social financing has been effectively controlled. The annual CPI rose by 2.6%, and the balance of payments continued to improve.

　　 Promoting financial reform and development and financial stability

The people's Bank of China has always attached great importance to financial reform and development and financial stability, so as to promote financial reform and promote the market to play a decisive role in the allocation of resources. We must firmly guard against the occurrence of systemic financial risks as the bottom line of financial work. During the year, the interest rate marketization reform took a new step, the lending rate control was fully liberalized, and the self-regulation mechanism of market interest rate pricing was established and improved. The centralized lending and issuing mechanism of the LPR was formally run, and the first 34 billion yuan interbank deposit certificates were released smoothly.

The RMB exchange rate appreciates slightly, floating in two directions, increasing in elasticity, and further reaching a reasonable equilibrium level. We took the lead in establishing a system of inter ministerial Joint Conference on financial supervision and coordination, and coordinated research and implementation of major policy matters such as financial information sharing, comprehensive statistics of financial industry, standardized development of Internet finance, interbank business norms, and division of responsibilities between central and local financial regulatory responsibilities. The financial support for the construction of China (Shanghai) free trade pilot area was introduced, and a series of pilot initiatives were launched in terms of capital account convertibility and cross border RMB use. We will actively promote regional financial reform in Wenzhou, Shenzhen and Qianhai in Zhejiang. We should increase the 7 provinces such as Jiangsu to develop the Agricultural Bank of China and deepen the reform of the Ministry of agriculture, rural areas and farmers. We should make preparations for the introduction of the deposit insurance system. Comprehensively studying the hidden dangers of systemic financial risks, strengthening risk monitoring in key areas such as local financing platforms and cross financial products, strengthening cooperation in Securities and futures supervision, and continuing to do a good job in risk management of high-risk financial institutions, and exploring the establishment of a systemic financial risk early warning system. China's financial industry has continued to operate steadily and efficiently in a complex and changing international environment. It has played an important role in supporting the development of the real economy and promoting the transformation of the mode of economic development.

　　 Further expansion RMB Cross border use

To comply with the changes in the international financial market and trade and investment needs, the PBC has continuously optimized cross-border RMB business management, facilitating banks and enterprises to carry out business. We should promote overseas Renminbi lending and RMB external guarantee business, allow foreign investors to use Renminbi to invest in domestic financial institutions, and foreign trade statistics achieve RMB denominated pricing, and RMB cross-border use will be further expanded. The amount of RMB settlement in cross-border trade increased by 57.6% over the same period of the year. The amount of RMB settlement in goods trade accounted for 11.7% of the total import and export volume of Customs goods in the same period, and the number of overseas enterprises where RMB cross-border receipts and payments occurred in the territory reached 174. New bilateral or local currency swap agreements with the size of 11555 billion yuan have been signed or renewed by 8 overseas central banks, such as the European Central Bank and England bank. The clearing mechanism for RMB business in Taiwan and Singapore has been established, and the offshore RMB market has been developing healthily.

　　 Regulate the development of banks bond market

In recent years, the people's Bank of China has persisted in the development direction and marketization principle of the OTC market in the bond market, vigorously fostering institutional investors, strengthening market constraints, promoting market innovation, strengthening standardized management, improving the transparency and information disclosure standards of the bond market, and achieving a healthy and rapid development of the interbank bond market. During the year, pilot projects of securitization of credit assets were further expanded, and 6 institutions such as the National Development Bank issued 15 billion 781 million yuan of credit assets securitization products. To promote the issuance of financial bonds such as insurance companies, the types and levels of the issuers of the bond market are constantly enriched. Research on innovative bond counter trading. To push the National Development Bank to issue financial bonds to the exchange. To promote the issuance of debt financing instruments by overseas non-financial enterprises in China. We should improve the pricing mechanism of bond issuance and strengthen the overall management of transaction settlement. We should improve the trading information disclosure mechanism and clean up the category C accounts. The bond market issued a total of RMB bonds 9 trillion yuan a year, of which the interbank bond market accumulatively issued RMB bonds 8 trillion and 200 billion yuan, an increase of 9.9% over the same period last year.

　　 Promote financial service Modernization level

The people's Bank of China has always promoted the upgrading of the financial services of the central bank as a basic work to raise the level of financial services in the whole society and realize the achievements of financial reform and development to benefit the broad masses of the people. During the year, we should focus on Revising the law of the people's Bank of China and the Interim Regulations on cash management. In conjunction with the relevant departments to introduce measures to prevent bitcoin risk management. A standardized sampling and statistical monitoring system for deposit and loan is established. Forming a financial enterprise plan. Led by the State Council to complete the first batch of key issues in the financial field. The transformation of accounting and financial work has been carried out in an all-round way. The second generation payment system was successfully launched and the central bank accounting data accounting centralized system (ACS) was put into operation. Issuing financial institutions code certificate, issuing banking disaster recovery layout guidance, unified financial IC card loading public service application standards. We successfully promoted the large number of cash crest numbers of commercial banks to inquire and achieve the goal of full cash clearing of commercial banks. The national treasury accounting data centralization system (TCBS) has been launched nationwide, and the Treasury information processing system (TIPS) has been more successful without any paperwork in Hainan and Fujian provinces. The formulation of the "administrative measures for credit agencies" has been made, and 9 provinces and municipalities in Beijing and other cities have conducted good results in Internet enquiry of personal credit reports. The management of assets related to terrorist activities has been formulated, and the comprehensive pilot projects of large and suspicious transactions have been effective. The working mechanism for the protection of the rights and interests of the financial system of the people's Bank of China has basically taken shape, and the financial consumer complaints handling mechanism has been further improved. The development of Inclusive Finance has been steadily advancing.

　　 Deepening foreign exchange and cooperation in Finance

The people's Bank of China always embarks from the national strategic interests to carry out external financial cooperation in an all-round way, multi-level and flexible, and continuously improves China's voice and influence in international financial affairs. During the year, it will continue to participate in global policy coordination with the help of the platform of the group of twenty and other platforms, so as to promote a strong and sustainable global economic development. We should promote the construction of BRIC contingency reserve arrangements and make the BRICs mechanism an important platform for China to participate in global governance and jointly cope with the crisis. Implementation of the ASEAN and China Japan Korea cooperation mechanism reserve pool size doubled to 240 billion U.S. dollars and other consensus. The joint financing fund agreement was signed with the Pan American Development Bank and the International Finance Corporation, and substantial progress was made in the joint financing negotiations with the African Development Bank. We will steadily promote financial cooperation between the four sides of the Strait.

2014 is the first year of comprehensively implementing the spirit of the party in the third Plenary Session of the 18th CPC Central Committee and comprehensively deepening the reform, and also the key year for the completion of the objectives and tasks of the 12th Five-Year plan. The people's Bank of China will thoroughly study and implement the spirit of the eighteen, eighteen second and third plenary sessions of the party and the central economic work conference. With the guidance of Deng Xiaoping theory, the important thought of Three Represents and Scientific Outlook on Development, we should adhere to the general keynote of the steady progress of the central bank, reform and innovate the central bank's work, continue to implement prudent monetary policy, constantly improve the ways and means of regulation and control, enhance the forward-looking, targeted and synergistic nature of the regulation, vigorously promote financial reform, earnestly safeguard financial stability, enhance the level of financial services and management, support the transformation of economic development mode and economic restructuring, maintain a balanced balance of payments, and promote sustained and healthy development of the economy and society.