The People's Bank of China issued the "China Financial Stability Report".

The People's Bank of China released the "China Financial Stability Report". The report points out that the financial system adheres to the centralized and unified leadership of the Party Central Committee on financial work, follows the decision-making arrangements of the Party Central Committee and the State Council, adheres to the general principle of seeking progress while maintaining stability, coordinates development and security, strengthens countercyclical adjustment, actively prevents and resolves risks in the financial sector, and effectively maintains financial stability and security. First, it increases financial support for the real economy. The reserve requirement ratio was lowered twice by a total of 1 percentage point in 2024 to maintain reasonable liquidity. Policy interest rates were lowered twice by a total of 0.3 percentage points to guide the decline of deposit and loan interest rates and the overall financing cost. A sound financial support policy system was established in the fields of technology, green finance, inclusive finance, elderly care, digital finance, etc., and a comprehensive statistical system for the "Five Major Areas" of finance was created. Second, actively resolve debt risks of financing platforms. Policies to resolve debt risks of financing platforms were promoted, a monitoring system and inquiry system for the debt of financing platforms were established, and efforts were made to promote the orderly exit of financing platforms. Third, support the stable and healthy development of the real estate market. Lower the minimum down payment ratio for mortgage loans, cancel the nationwide floor for mortgage interest rates, lower the interest rate on provident fund loans, promote lower interest rates on existing real estate loans, establish refinancing for affordable housing, improve the financial policy system for housing leasing, and accelerate the construction of a new model for real estate development. Fourth, further expand the role of the central bank in maintaining financial market stability. Based on market principles, tools such as securities, fund, insurance company swaps, and stock repurchase and increase lending were introduced to support the stable development of the capital market. Risks related to long-term government bond yields were communicated with the market to prevent potential market risks from the unilateral decline in long-term government bond yields. Improve the "macro-prudential + micro-regulatory" dual framework for managing the foreign exchange market to effectively maintain the stable operation of the foreign exchange market. Fifth, steadily advance the resolution of risks in key institutions and key regions. Through cooperation between the central and local governments, policies tailored to each province were implemented to reform and reduce risks in local small and medium-sized financial institutions, employing various methods such as mergers, reorganizations, and market exits in a stable manner to resolve risks in small and medium-sized banks, leading to a significant decrease in the number of high-risk small and medium-sized banks. Sixth, promote the construction of the financial stability guarantee system. Accelerate the legislation of financial stability laws and revisions to the People's Bank of China Law. Continue to strengthen the resources for risk resolution, orderly collection of deposit insurance fund premiums and financial stability guarantee fund collection, promote the improvement of financial stability guarantee fund management rules, and better support the resolution of risks in high-risk institutions. Currently, the overall operation of China's financial sector is stable, financial risks are converging and overall controllable, and financial institutions' operating and regulatory indicators are within a reasonable range.